Trump considers asking Europe to release diesel reserves amid potential US export ban
Quick Look
Donald Trump said he may ask European countries to release diesel reserves as he considers banning US diesel exports amid global shortages and rising prices, with Treasury Secretary Scott Bessent urging immediate action to protect US farmers and businesses; the issue is politically significant ahead of the November midterm elections.
AI-generated summary
Why It Matters
The US is a major global diesel exporter, supplying between 1.2 and 1.5 million barrels per day. Diesel prices have been rising due to global shortages and the war in Iran, with UK prices nearing record highs. The issue is politically salient ahead of the November US midterm elections.
Donald Trump has said he may ask European countries to release some of their diesel reserves as he mulls a ban on US exports of the fuel amid a global shortage.
The comments followed his Treasury Secretary Scott Bessent urging Europe to immediately ready and release such supplies, arguing that US "farmers, truckers, and businesses should not be left carrying the burden" as prices soar.
The US has threatened to restrict diesel exports amid surging costs due to the war in Iran. The issue is top of mind for US voters ahead of the crucial midterm elections.
On Thursday, the UK held talks with European partners about the potential release of diesel reserves in response to any ban.
The US is a vital supplier of diesel to the world, exporting between 1.2 and 1.5 million barrels per day, with experts warning a ban on shipments abroad could put further pressure on prices in other countries.
"We're thinking about it very seriously," Trump said of an export ban at the weekend.
On Thursday Trump added that he may ask European countries to release some of their diesel reserves, while Bessent said they should do so "immediately".
"Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions," Bessent said in a post on social media.
The plans come weeks ahead of November elections in the US, where control of Congress will be up for grabs. The president is set to travel across the US campaigning for Republicans in hopes of keeping control of the House and Senate.
Diesel prices in the UK hit record highs this week and are hovering just under 200p per litre, according to motoring organisation the RAC.
UK Energy Minister Martin McCluskey was on a call with European counterparts on Thursday to discuss the potential ban.
A source familiar with the discussions told the BBC it was prudent to prepare a co-ordinated response with other countries, including those across EU, but added that there were still European reserves left from a coordinated release of strategic fuel stocks earlier in the year.
"We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry," a government spokesperson said. The government has stressed that there is no cause for concern about potential diesel shortages, though prices are expected to rise further.
What to Watch
AI outlook — possibilities, not facts
The US will announce a decision on diesel export policy within the next few weeks
Likely · Within weeks
European countries will coordinate on diesel reserve releases if the US moves to restrict exports
Possible · Within weeks
Open Questions
- Will the US implement a diesel export ban?
- How much diesel reserve capacity do European countries have available for release?
- What specific timeline is being considered for any potential export restrictions?
