Oklo Inc. (OKLO) shares tumbled on Tuesday alongside a broader selloff in uranium and nuclear-related stocks. The catalyst? Reports that Ukraine may have accepted a peace proposal to end its war with Russia, which is throwing cold water on one of the sector's hottest investment narratives.

Peace Talks Gain Momentum

Ukraine signaled Tuesday that it supports the outline of a peace deal with Russia, though key issues still need hashing out in talks between President Volodymyr Zelenskiy and U.S. President Donald Trump, according to Reuters.

The timing suggests the Trump administration's diplomatic push might be gaining traction. Over the weekend, U.S. and Ukrainian negotiators met in Geneva to discuss Washington's latest peace proposal. Meanwhile, U.S. Army Secretary Dan Driscoll held separate talks with Russian officials in Abu Dhabi on Monday and Tuesday.

"Ukraine — after Geneva — supports the framework's essence, and some of the most sensitive issues remain as points for the discussion between presidents," a Ukrainian official stated. Rustem Umerov, Kyiv's national security chief, indicated that Zelenskiy may visit the U.S. in the coming days to finalize a deal with Trump.

White House press secretary Karoline Leavitt posted on X that the U.S. has made strong progress toward peace talks with Ukraine and Russia.

Why This Matters for Nuclear Stocks

Here's the thing: for Oklo and other nuclear companies, the war in Ukraine has been a significant tailwind. When nations scrambled to move away from Russian oil and gas, nuclear power suddenly looked like the safer, more dependable alternative. Energy security concerns became a powerful argument for long-term nuclear investments.

Now, with the conflict potentially winding down, that urgency is evaporating. Investors are starting to question whether they really want to commit to the long development timelines and regulatory uncertainties that come with nuclear projects.

A Sector Already Under Pressure

This isn't happening in a vacuum. November has already been brutal for the advanced nuclear energy sector. High-profile small modular reactor and microreactor companies have seen massive stock price declines. Oklo, alongside other similar companies in the industry, has lost more than a third of its value in a matter of weeks—down approximately 39% during November alone.

Following months of gains driven by enthusiasm over AI data centers' need for clean, dependable power, there's been a sharp reversal. Investors are now reassessing the risks associated with long-term nuclear projects, and the peace talk developments are only accelerating that reconsideration.

Oklo shares were down 5.80% at $84.35 at the time of publication on Tuesday.