In a notable shift in the ongoing Ukraine conflict, U.S. President Donald Trump has suggested that declining oil prices are influencing Russian President Vladimir Putin's openness to peace negotiations. Speaking from the Oval Office on May 5, Trump stated that both Moscow and Kyiv are inclined to settle the war, attributing Russia's newfound willingness to the recent drop in oil prices—a vital component of its economy.

"I think Russia, with the price of oil right now... we are in a good position to settle," Trump remarked, emphasizing that both nations desire an end to the conflict. He highlighted Putin's proposal for a three-day ceasefire to commemorate the 80th anniversary of the Soviet victory over Nazi Germany as a significant gesture towards peace.

The economic strain on Russia is evident, with its oil prices in roubles plummeting to a two-year low, over 40% below the budgeted level. This downturn has compelled the Kremlin to revise its 2025 budget deficit forecast and consider measures like tax increases and spending cuts to maintain fiscal stability amid the ongoing war.

Despite these developments, the Kremlin maintains that while Putin is open to peace, the complexity of the conflict makes a swift resolution unlikely. Ukrainian officials have expressed readiness for talks, provided Russia agrees to an unconditional ceasefire.

As the situation evolves, the interplay between economic pressures and diplomatic efforts continues to shape the prospects for peace in Ukraine.