Trump, Putin talk of war and peace as US weighs easing Russian oil sanctions

US President Donald Trump and Russian counterpart Vladimir Putin discussed the war in Iran and prospects for peace in Ukraine on Monday, hours after the Kremlin chief warned that a global energy crisis threatened the world economy.

The conflict caused the biggest spike in oil prices since Russia's 2022 invasion of Ukraine although the bulk of a surge in crude oil prices on Monday was reversed on Tuesday and Asian and European share prices staged a recovery.

The Kremlin said Trump had called Putin and, in their first telephone call this year, they discussed Russian ideas for a speedy end to the conflict in Iran, the military situation in Ukraine and the impact of events in Venezuela on the global oil market.

"I had a very good call with President Putin," Trump told a press conference at his Florida golf club, adding that Putin wanted to be helpful on Iran.

"I said, 'You could be more helpful by getting the Ukraine-Russia war over with. That will be more helpful.'"

Putin had said earlier that the US-Israeli war on Iran had triggered a global energy crisis, while cautioning that oil production dependent on transport through the Strait of Hormuz near Iran's coast could soon come to a halt.

Putin said Russia, the world's second-largest oil exporter and holder of its biggest natural gas reserves, was ready to work again with European customers if they wanted to return to long-term cooperation.

US sanctions

Trump's administration is considering reducing oil sanctions on Russia, three sources familiar with the planning said.

Talks could cover broad sanctions relief as well as more targeted options for certain countries, such as India, to buy Russian oil without fear of US penalties, including tariffs, the sources told Reuters.

The move would be intended to boost world supplies of oil following disruptions to Middle East shipments but could also complicate US efforts to deprive Russia of revenue for its war in Ukraine.

"We're also waiving certain oil-related sanctions to reduce prices. So we have sanctions on some countries. We're going to take those sanctions off until this straightens out," Trump told reporters, without identifying the countries.

"Then who knows, maybe we won't have to put them on; there'll be so much peace. But when the time comes, the US Navy and its partners will escort tankers through the Strait if needed."

Last week, the US allowed India to temporarily buy Russian crude oil already on tankers at sea, to help it cope with the cuts to Middle East supply.

On Friday, Treasury Secretary Scott Bessent said the United States could free more Russian oil from sanctions. Russia's special presidential envoy on investment, Kirill Dmitriev, said on Saturday he was discussing the issue with Washington.

The Kremlin said on Tuesday the idea of lifting oil sanctions had not been discussed in detail with Washington, but that the impact of sanctions on the world economy was understood by both Putin and Trump.