Trump threatens to cut off diesel

Donald Trump threatened to ban US diesel exports to Europe unless the bloc released strategic reserves to bring down global fuel prices.

G7 agrees to release 100m barrels

G7 leaders agreed to release 100 million barrels of diesel within four months after crisis talks on Friday, announced by Emmanuel Macron.

The threat came after Iran tensions

The standoff followed Trump's conflict with Iran, which sent diesel prices soaring across Europe and threatened to strain the UK economy further.

UK diesel hits record high

Diesel prices in the UK hit two hundred point zero one pence per litre on Friday for the first time, up from one hundred ninety nine point seventy nine pence on Thursday.

White House hails Trump as dealmaker

White House officials praised Trump as the dealmaker-in-chief. Deputy press secretary Taylor Rogers wrote that the deal would put more supply on the market and bring diesel prices down.

“This will put more supply on the market and bring diesel prices down. He is undeniably the Dealmaker-in-Chief!”

UK transport minister reassures on supply

Transport minister Keir Mather said the UK was working closely with the US and stressed the importance of sustaining diesel flows worldwide. He insisted the UK has a diverse range of diesel supply.

“I want to reassure people this morning that the United Kingdom has got a diverse range of supply when it comes to diesel.”

Emergency stocks are short-term fix

Dr Jonathan Owens from the University of Salford warned that releasing emergency stocks provides breathing space but reduces future protection and does not solve underlying issues.

“Emergency stocks can provide valuable breathing space, but they are a short-term intervention rather than a long-term solution.”

Higher costs hit food and goods

Dr Owens warned that higher diesel costs would push up transportation expenses across supply chains. Food, construction materials, manufactured goods and online deliveries would all face higher transport costs.

A full ban could be devastating

Angel Talavera, chief European economist for Oxford Economics, said a full US export ban could lift European diesel prices by forty to fifty percent, with devastating consequences for consumers.

“If enacted, a full ban could lift European diesel prices by 40 per cent to 50 per cent, which would have devastating consequences for consumers.”

UK seeks exemption from potential ban

British officials are in talks with the US over any possible export ban. Andy Burnham said he would seek an exemption for the UK if needed, and Chancellor John Healey said he was taking the threat very seriously.