US Considers Diesel Export Ban Amid Global Shortage, Urges Europe to Release Reserves

Donald Trump stated he may request European countries to release some of their diesel reserves as he contemplates a ban on US exports of the fuel due to a global shortage. This statement followed Treasury Secretary Scott Bessent's call for Europe to prepare and release such supplies, emphasizing that US farmers, truckers, and businesses should not bear the burden of rising prices. The US has threatened to restrict diesel exports amid increasing costs linked to the ongoing conflict in Iran. This issue is particularly significant for US voters ahead of the midterm elections. On Thursday, the UK engaged in discussions with European partners regarding the potential release of diesel reserves in response to any export ban. The US is a key supplier of diesel, exporting between 1.2 and 1.5 million barrels per day, and experts caution that a ban could further elevate prices in other nations. Trump remarked, "We're thinking about it very seriously" regarding the export ban. He reiterated his intention to ask European nations to release diesel reserves, while Bessent urged immediate action. Bessent stated, "Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions." These discussions occur weeks before the November elections in the US, where control of Congress is at stake. Diesel prices in the UK have reached record highs, nearing 200p per litre, according to the RAC. UK Energy Minister Martin McCluskey participated in a call with European counterparts to address the potential ban. A source informed the BBC that it would be wise to prepare a coordinated response with other countries, including EU members, although European reserves remain from a previous coordinated release of strategic fuel stocks. A government spokesperson noted that there is no immediate concern regarding diesel shortages, but prices are anticipated to rise further. A European Commission spokesperson indicated that numerous discussions are ongoing regarding the diesel situation, including high-level contacts with the US administration. Global petrol and diesel prices have surged since the onset of the US-Israel conflict in Iran in February, with the closure of the Strait of Hormuz, a critical transit route for a significant portion of the world's oil and gas, contributing to increased prices. An export ban from Russia, another major diesel supplier, has compounded the pressure on prices. Trump has suggested that retaining surplus diesel in the US could lower domestic pump prices, providing relief to drivers and businesses ahead of the midterm elections. However, David Fyfe, chief economist at Argus Media, warned that cutting off American supply might lead to a spike in international prices. Diesel prices in the UK have reached an all-time high, with the latest RAC figures indicating average pump prices at 199.79p per litre, up from 142.38p. Diesel is more challenging to refine than gasoline and is heavily utilized in the haulage and agriculture sectors, making demand reduction difficult. The UK relies significantly on imports; while its four refineries produce sufficient petrol, they do not meet the country's diesel needs. As of June, there were 15.1 million diesel vehicles on UK roads, a decrease from 15.7 million the previous year, with diesel cars dropping from 10.4 million to 9.8 million.