Oil prices slipped on Wednesday following Russia's acceptance of U.S. President Donald Trump's proposal for a temporary halt in attacks on energy infrastructure between Moscow and Kyiv. The ceasefire has raised the prospect of increased Russian crude supply, easing concerns over disruptions and putting downward pressure on the market.

Brent crude futures fell by 19 cents, or 0.3%, to $70.37 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 20 cents, or 0.3%, to $66.70. Market strategist Yeap Jun Rong described the agreement as a step toward de-escalation, reducing oil supply risks and keeping prices under pressure. As one of the world’s leading oil suppliers, Russia has seen its production decline due to sanctions imposed since the start of the war. A potential ceasefire could lead to an easing of these restrictions, increasing supply and further weighing on prices.

At the same time, concerns over a possible economic slowdown have also dampened oil demand, with U.S. tariffs on Canada, Mexico, and China fueling recession fears. Despite escalating tensions in the Middle East, Goldman Sachs analysts noted that high spare capacity and economic uncertainty continue to tilt market risks to the downside. Meanwhile, President Trump reaffirmed the U.S. military campaign against Yemen’s Houthis and warned Iran of consequences for any attacks linked to the group, which has been disrupting shipping in the Red Sea.

While the 30-day energy ceasefire between Russia and Ukraine has introduced a degree of stability, broader economic and geopolitical challenges continue to influence oil market dynamics.