Fight or talk? That is the bleak option facing EU member states after US President Donald Trump escalated his trade war by pledging to levy tariffs for a number of ills such as selling cars Americans like to buy and taxing tech companies on the money they make in its market, writes Andy Bounds.

The announcement of the Trump-Putin call made no mention of Europe or of much of a Ukrainian role, playing into fears that their interests will fall by the wayside.

"Any agreement without us will fail, because you need Europe and Ukraine to also implement the agreement," EU foreign policy chief Kaja Kallas said. "Any quick fix is a dirty deal." Ukrainian Foreign Minister Andrii Sybiha said: "Nothing can be discussed on Ukraine without Ukraine or on Europe without Europe.

President Volodymyr Zelensky of Ukraine and European defense ministers had expressed concern that they might not be present for talks between President Trump and Russia’s leader to end the war.

European stock markets rose on Thursday while gas prices fell after US President Donald Trump said talks with Russia would begin “immediately” to end the war in Ukraine. Germany’s Dax closed up 2.1 per cent and France’s Cac 40 gained 1.

The U.S. dollar held near a one-week high against the Japanese yen on Thursday after a hotter-than-expected consumer prices reading, while the euro was shored up by news that Washington aims to begin talks with Russia to end the war in Ukraine.