Trump supports diesel export ban as fuel prices hit records

• Diesel prices reached records in the US and Europe as conflicts in Iran and Ukraine cut exports from major producers like Russia, Saudi Arabia, and UAE
• Energy Secretary Wright warned an export ban would create a Gulf Coast glut, forcing refiners to cut production and reducing gasoline supply rather than increasing it
• Interior Secretary Burgum cautioned the ban could trigger retaliatory measures from energy exporters and would tighten supplies in Europe, which relies heavily on US diesel exports

Trump Supports Diesel Export Ban Amid Record Fuel Prices

Key Developments:

President Donald Trump publicly backed a diesel export ban on September 22, 2026, at the UN, stating "I've called for it within my people." The move comes as diesel prices reach record highs in the US and Europe due to sharply reduced exports from major producers including Russia, Saudi Arabia, and the UAE amid ongoing conflicts in Iran and Ukraine.

Political Context:

The proposal responds to pressure from Republican lawmakers in farm states, particularly Senator Chuck Grassley of Iowa, who cited the impact of high diesel prices on farmers' incomes. With November 3 midterm elections approaching, elevated fuel costs represent a political vulnerability for Trump and Republicans seeking to maintain Congressional majorities.

Administration Position:

Treasury Secretary Scott Bessent confirmed the administration is examining the feasibility of full or partial export restrictions. However, Trump's proposal faces opposition from his own energy officials:

• Energy Secretary Chris Wright warned that export barriers would create a Gulf Coast glut, forcing refiners to cut production rates and reduce gasoline supply, stating "We need more supply, not less supply"
• Interior Secretary Doug Burgum cautioned the ban would likely fail to lower petroleum prices and could trigger retaliatory measures from energy-exporting countries

Market Implications:

Analysts warn a diesel export ban could temporarily lower Gulf Coast prices but would severely tighten European supplies, as Europe is structurally diesel-deficient and heavily reliant on US exports. Wood Mackenzie's Jim Mitchell noted this "would seem pretty damaging to some key U.S. allies." The policy could also raise fuel and gasoline prices on the East and West Coasts.

Trump also discussed Ukrainian attacks on Russian refineries with President Zelenskiy, acknowledging their impact on diesel prices.