Trump Strikes Diesel Deal With Putin to Lower Fuel Prices Ahead of Midterms

President Donald Trump said Friday that Russia has agreed to release millions of tons of diesel fuel into U.S. and global markets following a telephone call with Russian President Vladimir Putin, marking a significant shift in U.S. energy sanctions policy as the White House seeks to bring down fuel prices ahead of next month’s midterm elections.

The announcement came alongside a new authorization from the U.S. Treasury Department allowing the sale, delivery, offloading and importation of Russian-origin diesel, including shipments into the United States, through April 7, 2027.

Trump said Russia would immediately supply more than 300,000 tons of diesel, followed by another 500,000 tons in November and 1 million tons shortly thereafter. An additional 3 million tons could follow, depending on the condition of Russian refineries.

Together, the announced volumes would amount to approximately 4.8 million tons of diesel entering global markets, although Trump did not specify how much would be destined for the United States or identify shipping arrangements.

“Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!” Trump wrote on Truth Social.

The announcement comes as diesel prices have climbed to near-record levels, driven by disruptions to global oil supplies stemming from the war with Iran and Ukraine’s continued attacks on Russian refining infrastructure. According to Reuters, U.S. diesel prices have risen roughly 70%, reaching $6.28 per gallon.

The issue has taken on growing political importance ahead of the November U.S. midterm elections, with high diesel costs affecting trucking, agriculture and the movement of goods throughout the economy.

Trump has repeatedly blamed Ukraine’s attacks on Russian oil refineries for contributing to the global diesel shortage. On Monday, he again pointed to the strikes, arguing that Russian refinery outages, rather than conditions in the Strait of Hormuz, were now driving U.S. fuel prices higher.

Ukraine has continued targeting Russian energy infrastructure as part of its campaign to weaken Moscow’s ability to finance and sustain its war. The strikes have reduced Russian refining capacity and complicated Moscow’s ability to export petroleum products.

The new diesel agreement represents a notable change in Washington’s approach to Russian energy. The United States has maintained restrictions on Russian petroleum imports since Moscow’s full-scale invasion of Ukraine in 2022, while additional sanctions have targeted Russian oil exports, financial institutions and vessels involved in transporting Russian energy.

Under General License 135, issued Friday by the Treasury’s Office of Foreign Assets Control, transactions involving Russian diesel that would otherwise be prohibited under specified U.S. sanctions programs are temporarily authorized. The license does not permit debits to accounts held at U.S. financial institutions by Russia’s central bank, National Wealth Fund or Ministry of Finance.

The authorization opens a potential new trade route for Russian diesel, although the extent to which U.S. refiners, fuel distributors and shipping companies will participate remains unclear.

The announcement also comes amid continuing uncertainty over commercial shipping through the Strait of Hormuz.

While Trump has repeatedly declared that the United States controls the strategic waterway, commercial vessels continue to face attacks in and around the strait. Recent incidents have also extended into the Persian Gulf, raising fresh concerns over the security of energy shipments.

Even where shipping lanes remain technically open, the threat of attacks, higher insurance costs and operational risks can discourage shipowners and charterers from sending vessels through the region.

Trump’s latest announcement effectively links two major sources of global energy disruption: Russia’s war in Ukraine and the conflict involving Iran. The administration is seeking to restore Russian diesel supplies while simultaneously pressing the shipping industry to increase traffic through Hormuz.

Whether those measures will translate into lower prices at U.S. fuel pumps remains uncertain. The Russian supply volumes have been announced, but the timing of actual deliveries, their destinations and their impact on global diesel markets have yet to be established.

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