By Seher Dareen

LONDON (Reuters) -Oil markets are set for a muted price reaction when they open on Sunday after U.S. President Donald Trump’s and Russian leader Vladimir Putin’s meeting in Alaska, at which Trump said a fully-fledged peace deal was the aim for Ukraine rather than a ceasefire.

Trump said he had agreed with Putin that negotiators should go straight to a peace settlement – not via a ceasefire, as Ukraine and European allies, until now with U.S. support, have been demanding.

Trump said he would hold off imposing tariffs on countries such as China for buying Russian oil following his talks with Putin. He has previously threatened sanctions on Moscow and secondary sanctions on countries such as China and India that buy Russian oil if no moves are made to end the Ukraine war.

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