The US government is calling on its European allies to immediately release diesel from emergency reserves into the market to ease tight global supply. Treasury Secretary Scott Bessent posted on social media on Thursday, October 1, that the United States is doing its part and hopes allies will follow through on their commitments as well. Trump told reporters in Texas the same day that the US may ask European countries to release diesel stocks, although he had previously said he was seriously considering a ban on US diesel exports. This week, however, that stance began to soften after crude oil exports through the Strait of Hormuz picked up again. The US government is under political pressure to address soaring fuel prices before the midterm elections in November. Data from the American Automobile Association shows the average US diesel price hit a record high of $6.50 a gallon in late September, up sharply from a year earlier, amid the fallout from the war with Iran and Russia's full-scale war in Ukraine.
US pushes Europe to release emergency diesel reserves to ease tight global supply, a supply-side move that would pressure heating oil/diesel prices lower, but the article's core driver is the tight supply from the Iran and Ukraine wars.
