U.S. President Donald Trump said he had reached a deal with Russian President Vladimir Putin that would allow Moscow to "immediately supply" diesel to global markets.
Trump said Putin agreed to supply 300,000 tons of diesel immediately, another 500,000 tons in November, and an additional 1 million tons thereafter.
Trump wrote on his social platform Truth Social: "Diesel prices for Americans and around the world will drop rapidly and at a record-breaking rate!"
Putin's envoy welcomed the deal. Ukrainian President Volodymyr Zelenskyy said that any measures to relax sanctions on Russia would help Moscow and would only prolong a war that should be over.
Since the outbreak of the war with Iran in February, U.S. diesel prices have doubled. The rising cost of living is putting pressure on Republicans ahead of the midterm elections.
According to data from the American Automobile Association (AAA), the current national average price of diesel fuel is $6.28 per gallon, down from the historical high of $6.53 per gallon recorded in late September.
Shortly after Trump announced the deal, the U.S. Treasury Department formally issued a temporary license to allow Russian diesel to enter the market.
Putin's special envoy Kirill Dmitriev welcomed the agreement on social media, saying: "Russian-US cooperation in diesel and energy will benefit the world."
But Zelensky fiercely criticized the deal, saying "a gift to Putin will not bring peace" and that Russia would repay the diesel revenue with "more terrorist actions."
"Allowing Russia to sell oil products is investing in a war that should be ended, not prolonged," he wrote on social media.
This year, Ukraine has repeatedly attacked Russian oil refineries with drones, causing two waves of severe fuel shortages across Russia.
The International Energy Agency (IEA) estimates that Russia's diesel production has dropped by nearly 30% as a result.
Trump has expressed displeasure with the attacks, saying they lead to higher fuel prices.
However, on Friday (October 9), Zelensky defended the attack, saying it was in response to "Russia's terrorist actions against Ukraine's energy system for many years."
"Ukraine would not have allowed Russian refineries to catch fire if Russia had not destroyed our energy infrastructure," he said.
It remains unclear how much of an impact the deal with Russia will have on fuel prices.
Brent crude, the global crude benchmark, remains above $103 a barrel. Before the Iran war broke out, Brent crude oil prices were around $73 a barrel.
The BBC has contacted the White House to inquire about how the United States will compensate Russia in exchange for the diesel supply.
It's the latest step Trump has taken to lower U.S. fuel prices.
Earlier this week, Trump said he was "considering" suspending the federal gasoline tax and announced that he would allow low-tax diesel fuel, commonly known as "red dye diesel," to be used on U.S. roads without paying federal fuel taxes.
He has also successfully pressured the Group of Seven (G7) countries to release a total of 100 million barrels of oil and diesel from their reserves to ease market concerns about supply. He has also supported calls to ban U.S. diesel exports.
