Donald Trump said he had reached a deal with Vladimir Putin for Russia to release up to 4.8mn tonnes of diesel on to the global marketplace as Washington races to quell fuel prices ahead of November’s midterm elections.
The US president on Friday said Moscow had agreed to “immediately” supply 300,000 tonnes of diesel, followed by another 500,000 tonnes in November and a further 1mn tonnes “immediately thereafter”.
Trump said an additional 3mn tonnes “within a short period of time” would be delivered by Russia “based on the condition of their Diesel Refineries”.
“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 price of wholesale diesel for delivery in New York harbour fell about 4.5 per cent to $4.67 a gallon following the announcement.
The deal between Washington and Moscow comes as the price of diesel — a vital input for industry and agriculture — soars globally as wars in the Middle East and Ukraine hit infrastructure and strain global supplies.
US diesel prices at the pump hit a record $6.53 in recent weeks, squeezing farmers and truckers and putting Trump under pressure ahead of next month’s midterm elections.
The White House has implemented a host of policy measures to tackle the fuel price crisis, leaning on European allies to release more stocks and loosening restrictions on the use of tax-exempt red diesel on public roads.
Russia, a crucial supplier of diesel to the world market, this year suspended exports as Ukrainian drone strikes on its refineries curbed supply. The suspension was due to expire at the end of October.
Kirill Dmitriev, chief executive of Russia’s sovereign wealth fund and a close Putin ally, said the arrangement followed a “successful call” between his president and Trump.
“Russia-US energy and economic co-operation will continue and benefit global markets and the world,” Dmitriev posted on X.
The US Treasury said its Office of Foreign Foreign Assets Control was “immediately issuing a temporary general licence to allow the supply of Russian diesel to the global market”.
West Texas Intermediate, the US oil marker, settled 0.4 per cent higher at $91.85 a barrel minutes before Trump’s announcement. Brent, which settled after the news, was up 0.4 per cent at $104.72.