Global Fuel Prices Surge as Trump Threatens Diesel Export Ban

Global fuel prices are surging amid wars and President Donald Trump's threats to restrict US diesel exports, a policy that could reduce global supplies and intensify competition for diesel. The US supplies about 20 percent of diesel traded by sea. Diesel prices have hit record highs in the UK, with costs rising about 40 percent since the Iran war began in February. Trump said on September 22 he "very seriously" supported banning US diesel exports, though no ban has been imposed and the White House denied plans for a 90-day restriction. European diesel futures have more than doubled since early 2026, while US average diesel prices crossed $6 a gallon for the first time this month. The IEA attributes the surge to Middle East supply disruptions, reduced Russian refining, depleted inventories, and refining capacity near limits. A US export ban could force American refiners to cut production, potentially raising gasoline and jet-fuel prices, while leaving Europe and Asia competing for fewer barrels.