US President Donald Trump has has said he would back a ban on diesel producers selling overseas as surging fuel prices hit drivers ahead of the midterm elections. Diesel prices are hovering near a record $6.45 per gallon on average, according to the American Automobile Association (AAA), due to the ongoing US-Israel war with Iran and tight global supplies. The proposal to stop US diesel exports aims to protect domestic consumers from those rising costs, but it could trigger major economic waves both at home and across the world, external.
The US is one of the world's leading energy producers, with domestic refineries churning out roughly four to five million barrels of diesel every day, according to the US Energy Information Administration (EIA). Americans consume about 3.6 million barrels of that daily output. Refiners export the remaining1.2 to 1.5 million barrels per day, making the US a vital supplier to the global market.
Between 60% and 70% of this exported fuel goes to Latin America. Nations like Mexico, Brazil, Chile, and Ecuador depend heavily on American shipments to power their transport, farming, and factory sectors. Significant volumes also head across the Atlantic to European countries like France, the Netherlands, and the UK, as buyers search for alternatives to Middle Eastern supplies.
US diesel prices have climbed to a record high of over $6.50 per gallon – up nearly 70% year-on-year. The spike has been driven by broader energy market shocks tied to ongoing conflict with Iran, which has restricted critical shipping routes through the Strait of Hormuz, a waterway south of Iran through which one fifth of the world's oil and gas usually flows. Diesel primarily fuels commercial vehicles in the US – such as freight trucks, farm machinery, and cargo trains – which are used for transporting goods and construction.
This means higher diesel prices can drive up the price of food, building projects, and many other things. Outside the US, diesel is used in both commercial and consumer vehicles, but the effects of higher prices are similar. In the UK, diesel prices at the pump have hit an all-time high, prompting warnings about logistics costs and household budgets.
UK Chancellor John Healey has told BBC News that the UK is in talks with US authorities over a potential diesel export ban and has started preparing for it. Meanwhile, in France and across continental Europe, governments are struggling with similar cost-of-living pressures because of rising fuel prices. Trump suggested over the weekend that restricting or outright banning US diesel exports could keep fuel in the domestic market and drive down prices for American consumers.
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