Donald Trump threatens diesel export ban to force Europe to tap fuel reserves

The Trump administration has warned European allies to immediately tap their emergency diesel stockpiles or face a total ban on US diesel exports.

The ultimatum, delivered by US Treasury Secretary Scott Bessent and backed by Donald Trump, has triggered urgent discussions in London, Paris and Berlin. It comes as a global diesel shortage, worsened by the conflict in Iran, threatens to push fuel prices to record highs.

"Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available," Bessent said. Trump confirmed the administration is "thinking about it very seriously," arguing that American drivers, truckers and farmers should not carry the burden of soaring prices.

The threat has sent a shudder through European capitals. The US is a crucial swing supplier of diesel, shipping between 1.2 million and 1.5 million barrels abroad every day. Cutting off that supply would cause international fuel prices to skyrocket, analysts warn. In the UK, diesel prices are already hovering just below an all-time high of 200p per litre.

On Thursday, British Energy Minister Martin McCluskey held urgent talks with European counterparts to coordinate a response to a potential ban. While UK officials insisted there is no immediate threat of a shortage, they admitted prices would likely rise further if Washington shuts the taps.

European Commission officials also confirmed they are holding "lots of calls, lots of meetings" with high-level US counterparts to head off the threat.

The dispute is rooted in domestic politics. With the US midterm elections in November fast approaching, Trump is eager to lower domestic fuel costs. He believes keeping American-refined diesel at home will bring down prices at the pump.

The global shortage has been driven by the war in Iran, which began in February, and the subsequent closure of the Strait of Hormuz—a vital transit route for a fifth of the world’s oil and gas. A Russian export ban has squeezed supplies even further.

Because diesel is essential for heavy industry, farming and freight transport, cutting demand is incredibly difficult. David Fyfe, chief economist at Argus Media, warned that halting US exports would backfire globally, driving international prices to extreme levels.

At the same time, the Trump administration is fighting a major environmental battle at home. A coalition of 21 US states, led by New York Attorney General Letitia James, has filed a lawsuit to block the Environmental Protection Agency’s repeal of Biden-era power plant emissions limits.

The EPA argued the repeal would save the energy industry $300 billion and help "unleash" domestic power, but the states claim the move unlawfully guts vital climate protections. With the US Supreme Court also preparing to hear a landmark climate damages case on Monday, the administration's energy policy is facing intense pressure both at home and abroad.