Key takeaways:
- Trump said Russia agreed to release 300,000 tons of diesel immediately, 500,000 tons in November, 1 million tons in December and another 3 million tons later.
- CBS News reported that the U.S. Treasury Department temporarily waived sanctions on Russia’s energy sector to allow Russian diesel onto global markets.
- AAA put the average U.S. diesel price at about $6.27 to $6.28 a gallon, according to the reports.
President Donald Trump said Friday that Russia would release millions of tons of diesel into global markets after a call with President Vladimir Putin, as high fuel prices continue to weigh on the United States during the war with Iran.
Russia agreed to supply 300,000 tons immediately, followed by 500,000 tons in November and 1 million tons in December, Trump wrote on Truth Social. He said Russia would deliver another 3 million tons “within a short period of time,” depending on the condition of its diesel refineries.
“I have just concluded a highly successful discussion with President Vladimir Putin,” Trump wrote. Kirill Dmitriev, an envoy for Putin, welcomed the announcement, saying on X that “Russia-US cooperation on diesel and energy will benefit the world.”
The U.S. Treasury Department also announced Friday that it would temporarily waive sanctions on Russia’s energy sector to “allow the supply of Russian diesel to the global market,” CBS News reported. Trump had earlier promised “big news on that diesel situation” during remarks at a Columbus Day celebration. He predicted that prices would “come tumbling,” but did not say how much he expected them to fall.
Diesel remains near record highs ahead of the November 3 congressional elections. AAA put the average U.S. price at about $6.28 a gallon, compared with $5.94 a month ago and $3.68 a year ago, according to CBS News. Al Jazeera cited an AAA average of $6.27 a gallon and reported that prices had fallen 10 cents over the past week. The fuel is widely used to move goods and in agriculture and construction.
The administration has also sought to increase diesel supplies by allowing red-dyed diesel, normally used for purposes such as farm equipment, on highways. CBS News reported that the fuel is exempt from the 24.4-cent-per-gallon federal tax applied to regular diesel. Al Jazeera reported that the G7 countries agreed a week earlier to release 100 million barrels of oil amid pressure from the White House.
The announcement came as the wider Middle East war showed no sign of ending. Trump said the United States would not resume attacks on Iran before next month’s midterm elections and described conversations with Tehran as “productive,” without giving details. Iranian President Masoud Pezeshkian said Thursday that Tehran had revised proposals for starting peace talks and was ready to finalize them through mediators. Trump had rejected an Iranian “7-day plan” offered in late September, CBS News reported.
Elsewhere, an attack by Iran-backed Houthi rebels killed three Saudi citizens Thursday at Riyadh’s main airport. Fighting between the Houthis and Saudi-backed forces in Yemen has intensified this week. Brent crude, the international oil benchmark, eased to about $103 a barrel Friday after Trump’s pledge not to resume strikes on Iran before the elections.
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