The Trump administration has urged European countries to urgently release diesel reserves, saying US farmers, truckers and businesses should not bear the burden of global supply disruptions.
The appeal comes as President Donald Trump weighs whether to impose a ban on US diesel exports as part of efforts to contain surging domestic energy prices.
Average US diesel prices rose to a record $6.50 per gallon late last month, according to AAA, marking a sharp increase from a year earlier amid supply disruptions linked to the Iran war and Russia’s war in Ukraine.
US Treasury Secretary Scott Bessent said in a social media post on Thursday that America’s European partners should accelerate existing commitments and make additional supplies immediately available to address ongoing disruptions.
“America is doing its part. We look to our allies to match their commitments with action,” Bessent said.
The US government is under mounting political pressure to address soaring fuel prices ahead of the November midterm elections.
Trump told reporters in Texas on Thursday that he “may” ask European countries to release diesel reserves. The president, who previously said he was “very seriously” considering a diesel export ban, has appeared to soften his position following a resurgence in crude exports through the strategically important Strait of Hormuz.
Trump said on Wednesday that he was still “thinking about” banning diesel exports, but acknowledged that such a move could have a “negative impact” on gasoline.
The prospect of the world’s largest diesel exporter imposing an outright export ban has drawn pushback from the US energy industry and raised concerns in Europe.
The US supplied about half of the European Union’s diesel imports in August, according to the International Energy Agency, highlighting the bloc’s exposure to any potential disruption in American diesel exports.
EU member states are scheduled to hold crisis talks on Friday to discuss a coordinated response to soaring diesel prices.
EU Trade Commissioner Maros Sefcovic said he had discussed diesel supplies and rising prices with US Trade Representative Jamieson Greer during the G20 trade ministers meeting in Milwaukee.
“We have every interest in working together on lowering the prices, be it on diesel or also other products from oil and gas supplies,” Sefcovic said, according to Reuters.
He added that any US move to restrict diesel exports would be unexpected and could negatively affect Europe’s economic outlook.
Energy strategists at Macquarie Group said the US response to the diesel crisis had taken on a global dimension because the underlying challenge extends beyond refined fuel supplies.
“The core issue the US faces is not a diesel problem. Nor is it a refined product problem. It may not even be a petroleum problem. It is a global energy problem,” Macquarie Group’s Walt Chancellor said in a research note.
Chancellor said increased oil flows through the Strait of Hormuz and out of the Middle East would be central to resolving the wider supply pressures.
The Strait of Hormuz is a major route for global oil trade, with shipping activity disrupted after the US and Israel attacked Iran in late February. Daily exports through the waterway, however, returned to prewar levels this week.
Boluwatife Enome
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