President Trump announced that Russia has committed to supplying millions of tons of diesel fuel to the global market over the coming months, a move aimed at curbing rapidly increasing energy costs. In a post on Truth Social, Trump stated that he had recently concluded a phone conversation with Russian President Vladimir Putin, who agreed to immediate deliveries of 300,000 tons. The agreement includes an additional 500,000 tons scheduled for November and 1 million tons in December.
Trump further noted that, depending on the operational status of Russian refineries, an additional 3 million tons of diesel would be delivered in the near future. To facilitate this influx, the Treasury Department confirmed on Friday that it would temporarily waive sanctions on Russia’s energy sector, permitting Russian diesel to enter the global marketplace.
The decision marks a significant shift in policy for the Trump administration, reversing the stringent sanctions imposed since Putin’s full-scale invasion of Ukraine began in 2022. This comes just a month after Trump signed legislation designed to restrict Russian energy profits by imposing heavy tariffs on the largest purchasers of Russian oil and gas.
Trump had hinted at the development earlier in the day during a Columbus Day celebration, telling reporters that a “big announcement” regarding diesel was imminent. He praised Energy Secretary Chris Wright, asserting that the administration is aggressively addressing the issue. “We have, I think, some big news on that diesel situation,” Trump said. “We’re gonna be knocking the hell out of it. And remember, what have we done? We stopped Iran from having a nuclear weapon. That’s big time. And the prices — the prices will come tumbling.”
The push to lower costs follows a surge in diesel prices driven by the ongoing conflict with Iran. According to AAA, the average price for a gallon of diesel has reached $6.28, up from $5.94 the previous month and $3.68 a year ago. Prices had not exceeded $6 per gallon until just before Labor Day, when they peaked at $6.53 on September 22. Diesel is critical to the trucking, agriculture, and construction industries, influencing the cost of goods ranging from building materials to groceries.
In addition to the Russian agreement, the administration has explored other measures to reduce costs, including an executive order signed this week that permits the use of red-dyed diesel on highways. This type of fuel is exempt from the federal excise tax of 24.4 cents per gallon that applies to standard diesel.
Trump also emphasized U.S. military dominance in the Strait of Hormuz, claiming “TOTAL CONTROL” over the vital waterway where American forces escort millions of barrels of crude oil nightly. Despite these efforts, Iran has continued to target shipping traffic, including an incident involving a vessel earlier on Friday.
“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. He added that lowering prices for farmers, ranchers, and truckers remains his top priority.
https://prod.vodvideo.cbsnews.com/cbsnews/vr/hls/4866526_hls/master.m3u8
Love the confidence, but trusting Putin’s delivery schedule is a gamble I’m not sure anyone should make with their energy bills.
Three million tons? That sounds like a lot, but will it really move the needle on $6+ diesel prices, or is this just political theater?
So we’re trading geopolitical pressure for cheap gas? My heater bill will be happy, but is this really the right price to pay?
Isn’t Russia already a major diesel exporter? Why do we need a presidential deal for something the market was already handling?
As a long-haul trucker, I don’t care about politics. I just need my fuel costs down to $4. Let’s see if this actually works.
Sanctions waived while calling for total control? This pivot is confusing and feels like it undermines our moral standing on Ukraine.