Trump's Diesel Export Ban Would Backfire on US and Allies

Republicans are pressuring President Trump to ban or restrict US diesel exports to combat record domestic prices ahead of the midterm elections, a move analysts say would backfire globally and domestically. The average US diesel price hit $US6.51 a gallon on Monday, about 75 per cent higher than a year ago. The price surge stems primarily from Trump's war on Iran, which has halved Middle Eastern exports, and Ukrainian attacks on Russian refineries that halted Russia's exports. An export ban would devastate Europe and diesel-dependent Asia, while US regions lacking pipeline access would face even higher prices as refineries cannot absorb diverted volumes. Political motivations are driving the proposal, as cost-of-living issues dominate the elections. Even a temporary price drop could save Republican seats, despite warnings that the reprieve would be brief and long-term consequences damaging to the economy, with potential Federal Reserve rate hikes looming.