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Trump’s fuel export ban threat sends European diesel soaring
Europe is already grappling with the loss of diesel shipments from the Middle East
A diesel pump at a gas station in Puteaux, France. (Teresa Suarez/AP)
Key Takeaways:
- President Donald Trump pushed advisers to consider a US diesel export ban, sending European diesel prices higher while U.S. diesel futures weakened.
- Europe relies heavily on U.S. diesel exports near 2 million barrels a day as Middle East disruptions and Russian export curbs tighten supplies.
- Treasury Secretary Scott Bessent said officials are assessing a full or partial ban, while an oil industry group warned of economic risks.
President Donald Trump’s push to ban American diesel exports sent European prices for the fuel surging, while U.S. futures came under pressure.
With flows from the region’s top supplier at risk, European diesel’s premium to Brent crude jumped to more than $95 a barrel on Sept. 23, a record in Bloomberg data going back to 2011.
Known as crack spread, the indicator has been keenly watched by central bankers as they seek to tame inflation. The equivalent measure in the U.S., meanwhile, weakened.
Trump’s threat comes as Europe is already grappling with the loss of diesel shipments from the Middle East, and Russian export curbs have tightened the global fuel market further.
The U.S. has become Europe’s main overseas supplier, with American exports of the workhorse fuel surging to a weekly record near 2 million barrels a day last month.
While the Middle East conflict has brought flows of petroleum products through the Strait of Hormuz down to a trickle, Moscow is set to extend a ban on most diesel exports beyond the end of this month as Ukraine continues to pummel Russia’s oil refineries.
Banning diesel exports won’t fix rising prices. It could just make them worse. API’s @T_Mason_H walks through the economics of getting this wrong. pic.twitter.com/u7YKNbD1RF
— American Petroleum Institute (@APIenergy) September 23, 2026
The wars have pushed up fuel prices faster than crude, stoking inflation on both sides of the Atlantic. In the U.S., rising prices at the pump have become a major source of frustration ahead of midterm elections.
Trump said he has encouraged his advisers to support a ban on U.S. diesel exports. Treasury Secretary Scott Bessent said officials are looking at whether a full or partial ban would work.
A key oil industry group cautioned against the move, saying it could lower American fuel production and damage the global economy.
