Trump posted on Truth Social that after his call with Putin, Russia would release diesel to world buyers in phases: more than 300,000 tons immediately, 500,000 tons in November, then 1 million tons right after that. He said an additional 3 million tons would depend on the condition of Russia's refineries. Taken together, he said the volumes would top 4 million tons.
On Friday, the Treasury Department unveiled a general license that pauses diesel-related sanctions on Russia until April 2027. The announcement lands as Trump faces mounting pressure to address fuel costs ahead of the November midterm elections, with Republicans in tight races even in conservative states like Iowa where farmers are squeezed by high diesel prices. His options are limited, though, with wars in Eastern Europe and the Middle East having damaged global refining capacity.
Trump floated a U.S. diesel export ban last month but pulled back after industry and major businesses warned it would push up gasoline prices. Earlier this week, he signed an executive order permitting truckers to operate on highways using tax-exempt off-road diesel without federal penalties. The order only defers the tax, leaving open questions about whether truckers might still owe it later.
Fuel agreements between major powers reshape global diesel flows. Market Briefs covers energy trade free every weekday.
Diesel prices have jumped worldwide as Ukraine has struck Russian refineries, a campaign that led Moscow to halt diesel exports to the global market. Separately, Iran and its Houthi allies have hit refineries in the Middle East, tightening fuel supply further.
Ukraine's President Volodymyr Zelenskyy blasted the deal in a social media post, cautioning that loosening penalties without a pledge from Russia to de-escalate would only make the war last longer. He said, "Gifts to Putin will not bring peace or any benefit to the civilized world," and added, "Russia will 'repay' the diesel with further terror and perfidy. Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged." All of this is unfolding while diesel is expensive and politically sensitive, especially for people who rely on it every day, like farmers in places such as Iowa.
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