Trump Threatens Diesel Export Ban to Lower U.S. Fuel Prices

President Donald Trump is considering a ban on U.S. diesel exports to lower domestic fuel prices, which reached a record average of $6.53 per gallon. The administration is facing intense political pressure to reduce energy costs before the November midterm elections. Trump attributed the price surge primarily to Ukrainian attacks on Russian refineries, demanding that President Volodymyr Zelenskyy stop targeting fuel infrastructure.

To avoid a blanket export ban, the U.S. has pressured France and Germany to release 120 million barrels of emergency diesel reserves over the next six months. Trade Representative Jamieson Greer and Energy Secretary Christopher A. Wright have communicated this demand to European counterparts, warning that a U.S. export ban would cause catastrophic price spikes in Europe and Latin America. In response, the European Commission and member states, including the United Kingdom, Italy, and Ireland, have held crisis talks. France has proposed a coordinated release of 50 million barrels of diesel and 50 million barrels of crude oil.

Global supplies remain strained by a combination of factors: the U.S. war with Iran, Russian export bans extended through October, and refined product export suspensions from China. While crude oil flows through the Strait of Hormuz have returned to prewar levels of approximately 13.5 million barrels per day following U.S. naval blockades and escorts, refined product shipments remain severely constrained. Trump acknowledged that an export ban could negatively impact gasoline prices, and over 30 U.S. business and energy groups have opposed the move, arguing it could discourage refinery production.