EU Rejects Russia-US Deal on Ukraine Peace Talks

Kallas told Euronews that Russia was wrong to think it could negotiate only with the United States and get what it wants, saying, “The message is that they have to speak with the Europeans.” She argued that pressure must stay on the aggressor rather than the victim and said Europe would continue backing Ukraine even if public support has softened after four years of war.

Her comments followed reports of a Trump-announced diesel arrangement and energy truce that Kallas dismissed as a gift to President Vladimir Putin, questioning what Russia had given in return. She said the battlefield reality has not changed: Russia keeps attacking Ukrainian infrastructure, while Kyiv says it will continue striking Russian refineries despite US pressure.

Investors are watching the war not just as a geopolitical story but as a pricing input for energy, defense and sovereign-risk assets. Higher crude has supported oil-linked markets, while sustained conflict keeps demand elevated for military contractors and underpins caution in European cyclicals exposed to energy and growth shocks.

Technical readings also show how quickly risk assets have been reacting to headlines. US oil fund USO closed at $161.76 on Oct. 16, up from $153.56 two sessions earlier, with its 50-day moving average at $142.68 and RSI at 65, a sign of strong momentum. The iShares MSCI Germany ETF EWG edged up to $41.57, still below its 50-day average of $42.79, as Europe’s growth-sensitive assets remain vulnerable to any escalation or failed diplomacy.

The broader narrative is that Europe wants to avoid being sidelined in any US-Russia contact while Ukraine is trying to keep military pressure on Russia’s oil system. With winter approaching and elections looming in key EU states, the next catalyst is whether talks involving Washington, Moscow and Kyiv gain traction or whether the fighting and energy strikes intensify again.