There are no eternal enemies, only eternal interests. Trump announced that he had reached a diesel supply agreement with Putin: Russia will supply 300,000, 500,000 and 1 million tonnes of diesel in October, November and December, respectively. The US is easing related sanctions at the same time, allowing Russian diesel imports through next April, while Russia will also lift its diesel export restrictions ahead of schedule.
The two sides were able to reach an understanding because of their practical needs. The US hopes to increase supply, lower transportation and agricultural costs, and ease inflationary and electoral pressures. Russia needs to expand its energy exports, increase revenue and secure room for sanctions to be eased. The US is trading market access for supply, while Russia is trading energy for revenue and negotiating leverage. When the cost of confrontation begins to affect each side’s core interests, cooperation has a basis.
For markets, if the additional supply helps drive energy prices down over the long term, it could ease inflationary pressure and give monetary policy more room to maneuver—a positive signal for both US stocks and the crypto market.
The two sides were able to reach an understanding because of their practical needs. The US hopes to increase supply, lower transportation and agricultural costs, and ease inflationary and electoral pressures. Russia needs to expand its energy exports, increase revenue and secure room for sanctions to be eased. The US is trading market access for supply, while Russia is trading energy for revenue and negotiating leverage. When the cost of confrontation begins to affect each side’s core interests, cooperation has a basis.
For markets, if the additional supply helps drive energy prices down over the long term, it could ease inflationary pressure and give monetary policy more room to maneuver—a positive signal for both US stocks and the crypto market.