U.S. Seeks European Diesel Reserves as Trump Contemplates Export Ban

POLICY WIRE — Washington, D.C. — The U.S. government has requested that several European nations release diesel from their emergency stockpiles in an effort to stabilize global fuel markets and ease surging costs.

The average price of diesel in the U.S. has risen by 70% since the conflict with Iran escalated, reaching $6.38 per gallon on Thursday, according to AAA data.

With midterm elections approaching, Republican leaders are seeking measures to reduce domestic fuel expenses. U.S. Energy Secretary Chris Wright expressed confidence that European allies would comply, stating that new diesel supplies would soon be available to lower prices. However, U.S. Trade Representative Jamieson Greer emphasized that no final agreement had been reached, calling the proposal a potential collaborative effort.

The G20 trade ministers meeting in Milwaukee, Wisconsin, includes discussions on global diesel shortages. European Commission spokesperson Anna-Kaisa Itkonen confirmed ongoing communication with U.S. officials about the issue, noting that the EU is coordinating closely with its member states.

Germany and France hold the bulk of Europe’s emergency diesel reserves. Despite near-full operation at refineries in both regions, global diesel prices have continued to climb, outpacing crude oil and gasoline increases since July.

Russia, a major diesel exporter, halted exports this summer after drone attacks damaged its refineries. On Wednesday, the Kremlin extended the ban until October. U.S. officials cited the loss of Russian, Middle Eastern, and Chinese diesel exports as contributing to supply disruptions.

Complicating the situation, the Trump administration is also considering an export ban on U.S. diesel, which could hurt European markets. President Trump mentioned the idea during a press event, noting that officials were divided on whether it would help or harm fuel prices.

Reporting by Policy-Wire (PW)