The United States has lifted its pause on intelligence sharing and resumed security assistance to Ukraine following Ukraine’s acceptance of a U.S.-proposed 30-day ceasefire plan, according to a joint statement released Tuesday. However, an influential Russian lawmaker quickly rejected American terms, and defense stocks fell in response.

What Happened: The agreement came during a meeting in Jeddah, Saudi Arabia, where Ukrainian representatives expressed “readiness to accept the U.S. proposal to enact an immediate, interim 30-day ceasefire,” which could be extended by mutual agreement and requires Russian acceptance and implementation.

Markets reacted swiftly to the news. The Nasdaq 100, tracked by Invesco QQQ Trust , reversed earlier losses and surged more than 400 points from its intraday low, closing up 0.7% on Tuesday.

Meanwhile, major defense contractors saw their shares decline. L3Harris Technologies Inc. ( LHX ) fell 2.53%, Lockheed Martin Corp. ( LMT ) dropped 2.15%, and General Dynamics Corp. ( GD ) declined 2.88% as investors recalibrated expectations amid peace prospects.

Konstantin Kosachev, chairman of the international affairs committee of Russia’s Federation Council, pushed back against the proposal Wednesday, stating on Telegram that any agreement would be “on our terms, not on American,” reported Reuters. Kosachev added, “This is not boasting, but understanding that real agreements are still being written there, at the front.”

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Why It Matters: The ceasefire development follows President Donald Trump‘s recent threat to impose “large-scale banking sanctions, sanctions, and tariffs on Russia” until a peace agreement is reached. Earlier this month, Trump had paused military aid to Ukraine, pressuring President Volodymyr Zelensky to pursue peace with Russia following a contentious Oval Office meeting.

Prediction markets have shown increasing confidence in a resolution, with Polymarket data indicating a 37% probability of Trump brokering a ceasefire within his first 90 days in office, up from 23% before the announcement.

As part of the agreement, both countries also committed to concluding “a comprehensive agreement for developing Ukraine’s critical mineral resources” that would expand Ukraine’s economy and secure its long-term prosperity.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.