During a United Nations sit-down between President Donald Trump and Ukrainian President Volodymyr Zelenskyy, Treasury Secretary Scott Bessent said the administration is assessing if a diesel export ban is doable, including whether today's refining capacity could support it and if a full or partial prohibition makes sense.
A group of Republican lawmakers - with Sen. Chuck Grassley of Iowa among them - has urged a halt to exports, saying surging diesel prices are hitting farmers and truckers particularly hard before the November midterm elections. Trump confirmed he has advocated for a ban during internal administration talks, keeping the option front and center.
Diesel prices have been propelled higher as wars in Eastern Europe and the Middle East cut into global refining capacity. Ukrainian strikes on Russian refineries led Moscow to impose its own diesel export ban. In the Middle East, refineries have been hit by Iran and its Houthi allies, while tanker traffic through the Strait of Hormuz is constrained amid Iranian threats.
With overseas supplies tight, U.S. refiners have stepped in, boosting diesel exports to meet global demand and capture strong margins. On Tuesday, diesel traded around $207 a barrel, more than $100 above crude oil. The industry's main lobby, the American Petroleum Institute, warned that "restricting U.S. energy exports would only compound the problem - exacerbating refining challenges and ultimately hurting consumers." API CEO Mike Sommers added, "The answer is more supply and more flexibility - not new restrictions that risk making a difficult situation worse."
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U.S. diesel averages a record $6.53 per gallon, nearly $3 more than a year ago, with California at $8.44. Diesel powers trucks, trains, and farm equipment, so pricier fuel tends to filter into grocery aisles and everyday goods.
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