Trump's so-called "major statement on Russia" revealed, market reaction: another 50 days? TACO! Oil prices plummet in response

Trump's so-called "major statement on Russia" once again turned out to be "loud thunder but little rain," with TACO trading replaying, and oil prices falling in response.

According to CCTV News, on the 14th local time, U.S. President Trump met with NATO Secretary General Jens Stoltenberg in the Oval Office and announced his so-called "major statement" regarding Russia. Trump threatened that if an agreement is not reached between Russia and Ukraine within 50 days, a 100% tariff will be imposed on Russia, and announced an agreement with NATO to supply weapons to Ukraine.

The market reacted coldly to this "major statement," generally believing that the 50-day buffer period provided ample negotiation time, contrasting with previous expectations of immediate sanctions, leading to a drop in oil prices.

Brent crude oil futures fell by $1.15 to $69.21, a decrease of 1.63%; U.S. WTI crude oil futures fell by $1.47 to $66.98, a decrease of 2.15%.

Threatening Tariff Sanctions but Offering a 50-Day Buffer

According to CCTV News, Trump stated during his meeting with Stoltenberg that he was "very, very dissatisfied" with Russia, mentioning that multiple conversations with Putin were "pleasant" but "meaningless." He said, "If we do not reach an agreement within 50 days, we will impose very severe tariffs. The rate will be about 100%."

White House officials later explained to the media that Trump's intention was that if an agreement is not reached between Russia and Ukraine within 50 days, the U.S. will impose a 100% tariff on Russia and secondary tariffs on countries purchasing Russian oil. However, the official did not provide detailed information about the secondary tariffs.

Trump also mentioned that he had reservations about the severe sanctions bill against Russia being pushed by the Senate, stating he was uncertain whether it was necessary and did not want Republican leaders to "waste time," but also acknowledged that it could be "very useful."

Announcing an Agreement with NATO for Weapons Aid to Ukraine

CCTV News also reported that Trump simultaneously announced that the U.S. had reached an agreement with NATO to supply weapons to Ukraine. He stated that the U.S. would send its best resources to NATO, which would coordinate support for Ukraine, and the agreement had been "fully approved and is being executed."

Under this arrangement, the U.S. will deliver a large quantity of various weapons to NATO, which will immediately send these weapons to the battlefield and cover all costs. Trump stated, "NATO will quickly pay for billions of dollars' worth of military equipment and distribute it to the Ukrainian battlefield."

Trump indicated that equipment, including the "Patriot" air defense missile system, would arrive in Ukraine "very quickly," expected "within days." Some European countries would also transfer their own "Patriot" air defense systems to Ukraine.

NATO Secretary General Stoltenberg stated that Germany, Finland, Denmark, Sweden, Norway, the Netherlands, and Canada all intended to join the plan to "rearm" Ukraine.

Expectations High, Market Reaction: Is That It?!

Trump's statement stemmed from a "disappointing" call with Putin last week, during which he previewed that he would make a "major statement" regarding Russia Subsequently, media reports citing sources indicated that the new weapon plan may include long-range missiles capable of penetrating deep into Russian territory, including Moscow. The report quoted South Carolina Senator Lindsey as saying, "Trump is really angry with Putin. His statement tomorrow will be very aggressive."

However, after the statement was released, the oil market reacted swiftly and reversed. On Monday morning, oil prices rose more than 2% at one point, as investors anticipated that the U.S. would immediately ramp up sanctions against Russia. But as details of the 50-day deadline were disclosed, prices fell back.

Market analysts believe that Trump's statement lacks an immediate threat, and the short-term impact on global energy supply is limited, alleviating investors' concerns about sanctions on Russian oil exports for the time being.

Russian television station RT, when releasing this news, also somewhat sarcastically placed the word "significant" in quotes.

Phil Flynn, senior analyst at Price Futures Group, stated: "The market views this statement as negative news because it seems there is plenty of time for negotiations. The fear of immediate sanctions on Russian oil is much further away than the market anticipated this morning."

Meanwhile, bipartisan legislation in the U.S. Congress is advancing sanctions against Russia, and EU envoys are also nearing agreement on the 18th round of sanctions against Russia, including lowering the oil price cap. Against this backdrop, Trump's remarks appear relatively mild