Trump Strikes Diesel Deal With Putin to Lower Fuel Prices Ahead of Midterms
President Donald Trump said Russia agreed to release millions of tons of diesel into US and global markets after a telephone call with Russian President Vladimir Putin, and the Treasury Department issued General License 135 authorizing transactions involving Russian-origin diesel through April 7 2027. Trump said Russia would supply more than 300,000 tons immediately, another 500,000 tons in November and 1 million tons shortly thereafter, with an additional 3 million tons possible depending on the condition of Russian refineries. The announcement came as diesel prices have climbed to near-record levels, driven by disruptions to global oil supplies from the war with Iran and Ukraine's attacks on Russian refining infrastructure.
Why it matters: The authorization marks a change in US sanctions policy on Russian energy and links two sources of energy security disruption, Russia's war in Ukraine and the conflict involving Iran, though delivery timing, destinations and market effects remain unestablished.