Oil prices took a further hit on Friday morning, causing a sharp decline in energy stocks, as U.S. President Donald Trump advocated for a peace agreement to conclude the protracted Russia-Ukraine conflict.

The international benchmark, Brent crude futures, set for January delivery, fell by 2% to $62.09 per barrel by 11:02 a.m. in London (6:02 a.m. ET), following a 0.2% dip in the previous trading session. The contract has plummeted over 16% this year.

Meanwhile, U.S. West Texas Intermediate futures for January delivery decreased by 2.4%, priced at $57.61, after a 0.5% drop at Thursday’s close.

In Europe, the Stoxx Oil and Gas index led the morning downturn, sliding more than 2.7%. British giants Shell and BP saw their shares dip approximately 1.6%, while Germany’s Siemens Energy experienced a more dramatic fall of over 8%.

The bearish market sentiment comes as investors pore over the details of the Trump administration’s push to secure a peace deal between Russia and Ukraine.

The U.S., under a widely leaked plan, has reportedly proposed that Ukraine cede land including Crimea, Luhansk and Donetsk, and pledge never to join the NATO military alliance.

The plan also says Kyiv will receive “reliable” security guarantees, while the size of the Ukrainian Armed Forces will be limited to 600,000 personnel, according to The Associated Press, which obtained a copy of the draft proposal. CNBC has not been able to independently verify the report.

Analysts were doubtful that the peace plan, which is thought to be favorable toward Russia, would be backed by Ukraine.

Guntram Wolff, senior fellow at Bruegel, a Brussels-based think tank, was among those skeptical about whether the proposed peace plan could lead to a deal.

“I think it’s always good to talk each other so in that sense it’s a good development but I have to say when I saw the details of this supposed peace plan, I really don’t think it can fly,” Wolff told CNBC’s “Europe Early Edition” on Friday.

“Because at the core, what it says is that Ukraine should give up significant parts of its military personnel, meaning the military personnel would decrease by something like a third from 900,000 to 600,000,” he added.

Alongside the peace plan noise, energy market participants closely monitored the potential impact of U.S. sanctions against Russian oil producers Rosneft and Lukoil, with the measures taking effect from Friday, a stronger U.S. dollar and expectations for the Federal Reserve’s upcoming interest rate decision.