US urges Europe to ready fuel as Trump threatens diesel ban
Donald Trump mulls banning US diesel exports to lower domestic prices ahead of midterm elections, prompting emergency talks in the UK and Europe.
Stock photo for illustration only, not from the actual event
- Donald Trump considers banning US diesel exports amid a severe global shortage.
- US Treasury Secretary Scott Bessent urges Europe to immediately release fuel reserves.
- The US exports 1.2 to 1.5 million barrels of diesel daily globally.
- UK holds emergency talks as diesel prices soar toward record highs near 200p per litre.
US President Donald Trump has indicated he may ask European nations to release portions of their strategic diesel reserves as he weighs a complete ban on American diesel exports to combat a mounting global shortage. The development comes against the backdrop of ongoing energy disruptions linked to the conflict involving Iran.
The remarks closely followed a public call from US Treasury Secretary Scott Bessent, who urged European allies to immediately ready and release fuel supplies. Bessent argued that American farmers, truck drivers, and businesses should not bear the brunt of skyrocketing energy costs while the US supplies between 1.2 and 1.5 million barrels of diesel to international markets daily.
Energy costs have emerged as a paramount concern for American voters with the crucial congressional midterm elections looming in November. The president is slated to campaign extensively across the United States to help Republicans maintain control of both the House and the Senate.
Stock photo for illustration only, not from the actual event
Meanwhile, British Energy Minister Martin McCluskey engaged in telephone discussions with European counterparts on Thursday to coordinate a potential response should Washington enact the export ban.
"Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions."
Scott Bessent, US Treasury Secretary
David Fyfe, chief economist at Argus Media, warned that cutting off US shipments abroad would likely trigger a massive surge in international prices. Diesel is notoriously more difficult to refine than gasoline, and because it is heavily relied upon by the haulage and agricultural sectors, reducing short-term demand remains a significant challenge.
This unfolding energy crunch highlights the fragility of global supply chains, exacerbated by the closure of the Strait of Hormuz which handles roughly a fifth of the world's oil and gas. Combined with export restrictions from Russia, import-dependent nations like the UK face mounting economic pressure. Although governments insist domestic supplies remain secure, surging pump prices have turned energy policy into a critical battleground ahead of upcoming political showdowns.
The RAC motoring organization reported that average pump prices for diesel in the UK hit an all-time high of 199.79p per litre, compared to 142.38p previously. Department for Transport figures also showed that total diesel vehicles on British roads declined to 15.1 million at the end of June, down from 15.7 million the previous year.
Source: BBC Business
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