CNBC Says Trump Calls, Kyiv Assault Put Markets on Alert as Ukraine War Enters New Phase

The Russia-Ukraine war entered a new phase over the weekend, sharpening market focus on geopolitical risk, CNBC reported on July 6.

President Donald Trump held separate calls over the weekend with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy.

At the same time, Ukrainian drones struck an oil terminal and nearby port facilities in St. Petersburg, Russia. Moscow then launched its second large-scale air assault on Kyiv in a week.

CNBC reported that investors are repricing geopolitical risk, energy security and whether Europe will follow through on defense spending as the prospects for renewed diplomacy and the risk of escalation rise in tandem.

In a social media post on July 4, Zelenskiy wrote that there is a real chance to end the war and that US resolve will be decisive. He said he discussed battlefield conditions with Trump and agreed to continue talks at the North Atlantic Treaty Organization summit.

The Kremlin said Trump and Putin spoke for 90 minutes over the weekend. Yuri Ushakov, a Kremlin aide, described the conversation as businesslike and very constructive.

Ushakov said there is enormous potential for mutually beneficial cooperation between the two countries. Trump, he added, stressed that ending the conflict in Ukraine as soon as possible is necessary to achieve that.

Ukraine has recently stepped up long-range attacks on Russian energy facilities and military assets. CNBC said Kyiv appears to be pursuing a strategy of pressuring Russia's energy revenue sources and raising the political cost for the Kremlin.

Ukrainian authorities said strikes on July 3 and July 4 hit a major oil terminal in St. Petersburg and the Kronstadt naval base, a key base for Russia's Baltic Fleet. The attacks reportedly triggered fires at the oil terminal and military facilities.

Russia responded early on July 6 with a missile and drone attack on Kyiv. Ukrainian authorities said at least 11 people were killed and a residential high-rise was heavily damaged. The assault came a day before a NATO summit in Ankara, Turkey.

The Institute for the Study of War, a US think tank, said Putin appeared to use his call with Trump to push Russia's account of battlefield conditions. It said Moscow may be trying to shape a distorted Western view of the war to force acceptance of demands it has failed to win militarily.

CNBC also said markets are watching Trump's signal that US support for Ukraine could resume after a temporary peace agreement with Iran.

This week's NATO summit will center on support for Ukraine, European defense spending and the possibility of renewed diplomacy with Russia. Markets are watching whether a diplomatic breakthrough emerges or whether continued attacks by Russia and Ukraine add further pressure to energy prices and sentiment toward risk assets.