Crude oil prices slipped toward $90 per barrel on Monday, snapping a two-session rally, as anticipation that Russian diesel exports could ease global fuel shortages put downward pressure on the market. On Friday, President Donald Trump said his administration had reached an agreement under which Russia would supply hundreds of thousands of tons of diesel fuel, signaling a partial relaxation of Moscow’s export ban. Trump also asserted that Russia and Ukraine had agreed to an “energy ceasefire” that would take effect immediately.
At the same time, geopolitical risks remained elevated. Saudi Arabia’s main airport was targeted again on Sunday by Iran-backed Houthi militants, just one day after an earlier attack killed 12 people and injured more than 300. The renewed strikes led Trump to consider joining Saudi Arabia in retaliatory action against the Houthis in Yemen. In a separate incident, a drone hit an oil tanker near the Sohar anchorage off Oman over the weekend, just outside the Strait of Hormuz, underscoring ongoing threats to global energy supplies.