President Donald Trump said Russia will release diesel into the global market under a deal with President Vladimir Putin. Diesel prices have surged worldwide, and the White House faces pressure to lower fuel costs before the November midterm elections.
Trump said Friday that Russia will supply millions of tons of diesel to the global market under a deal he struck with Putin. He announced it in a post on Truth Social.
Deal sets out a staged diesel schedule
According to Trump, Russia will immediately supply more than 300,000 tons of diesel, followed by 500,000 tons in November and 1 million tons immediately thereafter. Moscow will then deliver another 3 million tons, based on the condition of Russia's refineries, Trump said.
Shortly after the announcement, the US Treasury issued a temporary license allowing Russian diesel into the market. Putin's envoy, Kirill Dmitriev, welcomed the deal on social media, writing: "Russia-US co-operation on diesel and energy will benefit the world."
Prices climbed after refinery attacks
Diesel prices have surged around the world as Ukraine has pounded Russian refineries, forcing Moscow to ban diesel exports to the global market. Iran and its Houthi allies have also attacked refineries in the Middle East, further constraining fuel supplies.
In the US, the average diesel price is $6.28 a gallon, according to the AAA, down from the record high of $6.53 at the end of September. US diesel prices have doubled since the war with Iran began in February.
Trump is under growing political pressure to reduce fuel prices ahead of the November midterm elections, with Republicans facing competitive races in places like Iowa, where farmers are feeling the pinch.
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