Trump Says He Is 'Very Seriously' Considering US Diesel Export Ban

US President Trump said he is still 'very seriously' considering implementing a US diesel export ban to address high oil prices.

According to Bloomberg, Trump told reporters on Sunday the 27th while attending a golf tournament: 'This tends to cause a slight increase in gasoline prices, so we are very seriously considering this measure – we might do it.'

Several US agricultural state lawmakers have urged Trump to restrict US diesel exports during the peak autumn harvest season. Diesel is the power source for agricultural machinery, freight trains, trucks, and delivery vans.

Last week, US retail diesel prices hit a record high, averaging about $6.50 per gallon, exacerbating voter anxiety over the cost of living ahead of the November midterm elections.

Over the past week, National Economic Council Director Kevin Hassett, Treasury Secretary Bessent, and Trade Representative Greer have been analyzing the potential impact of a short-term ban on US diesel exports, highlighting the government's serious consideration of the idea.

The market expects that if the US government implements the ban, diesel prices will fall significantly, at least in the short term.

Disruptions to shipping on the key Strait of Hormuz waterway and Ukraine's attacks on Russian refineries have dealt a heavy blow to global fuel markets, making the US an important source of diesel supply for the global market.