Should ol/ul be inside or outside?

Which is standard compliant between these two?

<p>Text text text ...
    <ol>
        <li>First element</li>
    </ol>
</p>
<p>
    Other text text ...
</p>

OR

<p>
    Text text text ...
</p>
<ol>
    <li>First element</li>
</ol>
<p>
    Other text text ...
</p>