Ukrainian President Volodymyr Zelenskyy said talks with the U.S. about a peace plan were continuing following a report suggesting that Kyiv agreed to the terms of a potential deal to end Russia’s full-scale invasion.

“Communication with the American side continues,” Zelenskyy said in a post on X following a phone call with German Chancellor Friedrich Merz on Tuesday. “I am grateful for all of America’s efforts and personally for President Trump’s efforts.”

The agreement is on the broad framework of a deal — with key points still to be resolved between U.S. and Ukraine, including the thorniest issues such as territory and security guarantees, which have to be resolved at the level of presidents, according to a person familiar with the matter. They requested anonymity because talks are confidential.

ABC News reported on Tuesday, citing a U.S. official, that Ukraine agreed to a potential peace deal with some minor details to be sorted. Speculation is running high that an agreement could be close after U.S. President Donald Trump suggested in a social media post on Monday that “big progress” was being made on a deal for Ukraine.

Markets moved on the report. Brent futures fell sharply, briefly slipping below $62 a barrel in London. Russia’s oil industry is heavily sanctioned and a peace deal would remove some geopolitical premium from prices — and could ease some of the friction around Moscow’s oil flows.

Emerging market currencies hit a session high. Shares in Kyivstar Group shares jump 6.3% in premarket trading.

U.S. and Russian delegations are meeting in Abu Dhabi following talks in Geneva over the weekend that made advances in defusing the vehement opposition from Kyiv and its European allies to a 28-point peace proposal the White House team floated last week.

Ukraine’s military intelligence chief, Kyrylo Budanov, is also in Abu Dhabi for meetings, a person familiar with the matter said. Military intelligence didn’t reply to requests for comment from Bloomberg News.

The peace blueprint has been narrowed to a new list of 19 proposals in Geneva in Sunday. Yet any discussions involving territorial issues, which are at the crux of a potential settlement, would have to be tackled at a meeting between the Ukrainian and U.S. presidents, according to Ihor Brusylo, the deputy chief Zelenskyy’s office.

Rustem Umerov, secretary of the National Defense and Security Council, said earlier on Tuesday that U.S. and Ukrainian delegations “reached a common understanding on the core terms of the agreement discussed in Geneva.” Ukraine was looking forward to organizing a visit by Zelenskyy to U.S. at the soonest possible date this month, he posted on X.

The initial draft plan caught Kyiv and Ukrainian allies off-guard with its demands that the war-battered nation drop its ambition to join NATO and surrender territory in the eastern Donbas regions, including areas Russia doesn’t yet control.

Kremlin spokesman Dmitry Peskov said he had nothing to report when asked about the meeting in Abu Dhabi, according to the Interfax news service.

Russian Foreign Minister Sergei Lavrov said Tuesday that Moscow expected the U.S. to present a version of the plan after the talks with Europeans and Ukraine. But he also signaled that any deviations from the understandings reached during Trump’s summit with President Vladimir Putin in Alaska earlier this year would be a hard sell with the Kremlin.

“If the spirit and letter of Anchorage are erased from those key understandings we recorded, then, of course, it will be a fundamentally different situation,” Lavrov said. “But so far, I repeat, no one has officially conveyed anything to us.”

Russia and Ukraine exchanged fire overnight with heavy air raids on Kyiv and assaults on southern Russian areas.

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