United States President Donald Trump announced that Russia has agreed to supply 300,000 tonnes of diesel fuel to global markets immediately, with additional shipments planned throughout the fall. The agreement follows discussions between Trump and Russian President Vladimir Putin, according to a post on Trump’s Truth Social platform.
Trump detailed the schedule, stating that an extra 500,000 tons would be delivered in November, followed by another 1 million tons shortly thereafter. He further indicated that Russia committed to providing an additional 3 million tonnes of fuel “within a short period of time.”
Kirill Dmitriev, an envoy for President Putin, welcomed the announcement on X, describing the collaboration as beneficial for the world. “Russia-US cooperation on diesel and energy will benefit the world,” Dmitriev wrote.
The deal emerges against a backdrop of severe supply disruptions caused by the ongoing war in Iran and conflicts in Ukraine. Ukrainian air strikes have reportedly taken more than half of Russia’s oil refining capacity offline, according to claims by Ukraine’s Ministry of Defence. These hostilities have triggered what analysts describe as an unprecedented global fuel supply crunch.
The announcement comes just one week after G7 nations agreed to release 100 million barrels of oil and diesel in response to pressure from the White House. Additionally, Trump has previously pressured allies to tap emergency reserves and expanded access to tax-exempt red-dyed diesel, which is typically reserved for agricultural use.
Diesel prices, critical for agriculture, home heating, and logistics, have surged approximately 70% since the US and Israel launched their campaign against Iran earlier this year. As of the latest data from the American Automobile Association (AAA), the average price for a gallon of diesel stands at $6.27. While this represents a slight decline of 10 cents from the previous week, it remains nearly $6 higher than prices recorded a month ago.
With congressional elections scheduled for November 3, the cost of fuel has become a significant political factor. Although recent data shows prices beginning to stabilize downward, the elevated costs continue to drive inflation concerns ahead of the vote that will determine control of Congress.
Wait, isn’t half of Russia’s refining capacity already destroyed by Ukrainian strikes? How exactly will they deliver all this?
Is this really a deal or just political theater before the midterms? The timing seems too convenient to ignore.
Buying diesel from Putin feels like bringing a wolf into the henhouse, but I guess $6 gas is brutal.