Trump announces Russian diesel deal amid soaring US fuel prices

President Trump declared that Russia has committed to supplying the world with substantial quantities of diesel fuel to alleviate the soaring global prices. In a post on Truth Social, the president reported that he had recently spoken with Russian President Vladimir Putin, who had agreed to release 300,000 tons of diesel fuel immediately.

Another 500,000 tons would follow in November, and 1 million tons would be released in December. Furthermore, Russian diesel refineries will, in a short time, provide an additional 3 million tons of diesel fuel. The Treasury Department also announced on Friday that it would temporarily waive sanctions on Russia's energy sector to facilitate the supply of Russian diesel to the global market.

These actions by the Trump administration represent a shift away from the stringent sanctions that have restricted Russia's economy since Putin initiated a full-scale invasion of Ukraine in 2022. Last month, Trump signed a bill intended to make it more difficult for Russia to profit from oil and gas exports by imposing heavy tariffs on the largest purchasers of Russian energy.

Earlier in the day, Trump had hinted at a significant announcement regarding diesel fuel during remarks at a Columbus Day celebration, but provided limited details about the announcement. The president praised Energy Secretary Chris Wright, stating that he was performing an excellent job. Trump emphasized that diesel prices had skyrocketed due to the ongoing war with Iran, with the average price reaching $6.28 per gallon, a significant increase from $3.68 a year ago.

Diesel fuel is extensively utilized in various sectors, including trucking, agriculture, and construction, affecting virtually every type of product, including groceries. The administration has explored several methods to reduce diesel prices, recently signing an executive order allowing the use of red-dyed diesel on highways, which is exempt from the federal tax of 24.4 cents per gallon.

Trump also claimed that the U.S. has "TOTAL CONTROL" over the Strait of Hormuz, as American forces escort millions of barrels of crude oil through the waterway daily. However, Iran continues to target some of those ships, including one earlier on Friday. Trump concluded his announcement by asserting that lower diesel prices for Americans and the world would be achieved "in record numbers and fast!"