Key facts
- President Donald Trump ruled out a ban on U.S. diesel exports.
- Europe agreed to release 100 million barrels of diesel and crude oil from strategic reserves.
- The U.S. had previously threatened Europe with an export ban if stockpiles were not tapped.
- The UK imports over half its diesel supply, with roughly a third coming from the U.S.
- Diesel prices in Britain have risen to nearly 200p a liter.
President Donald Trump announced he is ruling out a ban on U.S. diesel exports, a move that had threatened to disrupt global supply and send prices soaring. The decision comes after European nations agreed to tap into their emergency stockpiles of the fuel.
The U.S. had previously pressured European countries, including Germany and France, to release emergency diesel inventories to alleviate a global shortage exacerbated by conflicts in the Middle East and Ukraine. The Trump administration had considered protectionist trade measures, including export curbs or an outright ban, should Europe refuse to release its reserves.
UK Energy Secretary Miatta Fahnbulleh held direct talks with her U.S. counterpart, Chris Wright, to discuss the potential impact of U.S. export restrictions on European supply. The UK imports over half of its diesel, with approximately one-third originating from the United States, making any ban significantly damaging.
Diesel prices have been climbing globally, with Britain experiencing prices nearing record highs. The situation is further complicated by the planned 10-week maintenance shutdown of the UK's largest refinery, Fawley, which produces a significant portion of the country's diesel. Chancellor John Healey acknowledged the "extreme" nature of diesel prices and stated that diplomatic efforts were underway to ease the situation.