Trump, Putin talk of war and peace as US weighs easing Russian oil sanctions

Ukraine ceasefire prospects amid fears of global energy crisis

US President Donald Trump and his Russian counterpart Vladimir Putin discussed on Monday the war in Iran and prospects for peace in Ukraine, just hours after the Kremlin chief warned that a global energy crisis threatened the world economy.

The US and Israeli attack on Iran triggered the biggest spike in oil prices since the turmoil following Russia’s 2022 invasion of Ukraine, as Gulf producers reduced output after the closure of the Strait of Hormuz.

The Kremlin said Trump called Putin — their first telephone call this year — and the two discussed Russian ideas for a speedy end to the conflict in Iran, the military situation in Ukraine and the impact of Venezuela on the global oil market.

Read: Putin calls for immediate halt to Iran conflict

“I had a very good call with President Putin,” Trump told a news conference at his Florida golf club, adding that Putin wanted to be helpful on Iran.

“I said, ‘You could be more helpful by getting the Ukraine-Russia war over with. That will be more helpful.’”

The call came within hours of Putin’s remarks that the US-Israeli war on Iran had triggered a global energy crisis, while cautioning that oil production dependent on transport through the Strait of Hormuz could soon come to a halt.

Putin said Russia, the world’s second-largest oil exporter and holder of its biggest natural gas reserves, was ready to work again with European customers if they wanted to return to long-term cooperation.

Amid turmoil on global energy markets, the Trump administration is considering reducing oil sanctions on Russia, with an announcement possible as soon as Monday, according to three sources familiar with the planning.

The move would be intended to boost global oil supply following disruptions to Middle East shipments from the expanding conflict, but could also complicate US efforts to deprive Russia of revenue for its war in Ukraine.

Read More: US approves temporary sale of stranded Russian oil to India

Talks could include broad sanctions relief as well as targeted options allowing certain countries, such as India, to buy Russian oil without fear of US penalties, including tariffs, the sources said, speaking on condition of anonymity.

Last week, the United States allowed India to temporarily buy Russian crude oil already on tankers at sea to help it cope with cuts to Middle East supply.

Kremlin foreign policy aide Yuri Ushakov said the discussion with Trump was “very substantial” and “likely to have practical significance for further work between the two countries”.

Ushakov said Trump believed it was in the US interest to see a “rapid end to the conflict in Ukraine with a ceasefire and a long-term settlement”.

The advance of Russian troops in Ukraine should prompt Kyiv to seek a negotiated end to the conflict, he added.