Trump Weighs Diesel Export Ban As Fuel Prices Threaten Republican Midterms

President Donald Trump has convened urgent discussions on restricting diesel exports as surging fuel costs threaten Republicans’ midterm prospects.

Advisers have outlined several interventions, including limits on overseas diesel sales, according to people familiar with the deliberations.

Administration officials have also alerted foreign partners, including the U.K., to potential supply interruptions, according to the Financial Times.

A White House official said the president was considering measures to reduce domestic fuel costs. An export suspension has not been approved.

Republican Pressure Builds

Diesel reached $6.53 a gallon last week, more than 70% above its level before the Iran war.

The increase has raised costs for farmers and other industrial users, intensifying demands for action from Republican lawmakers.

Iowa Senator Chuck Grassley has led pressure from agricultural states to restrict exports. Polls show dissatisfaction with Trump’s economic management, inflation and the war.

“The political effects are that the Republicans could lose the majority,” Representative Tim Burchett of Tennessee told the Financial Times.

Burchett, who has introduced legislation to prohibit diesel exports, said voters would hold the governing party accountable.

“We’re going to own it, whether we deserve to or not. We’re the ones in power, it’s hard to escape that,” he said.

An industry figure familiar with the discussions said the proposal had gained momentum last week following appeals from Grassley and other senior Republicans representing farming states.

Oil Industry Pushes Back

Oil executives have stepped up lobbying to protect overseas sales. Energy Secretary Chris Wright, Interior Secretary Doug Burgum and Treasury Secretary Scott Bessent have also argued against a ban.

ExxonMobil Chief Executive Darren Woods met Wright at the White House on Tuesday.

People familiar with the discussions said industry arguments had persuaded Trump that restrictions could increase fuel costs in U.S. regions dependent on imports from international markets.

The president nevertheless said over the weekend that he was “very seriously considering” an export ban.

People involved in the debate said an abrupt decision remained possible despite opposition within the administration.

Allies Prepare for Disruption

Wright discussed the issue with U.K. officials on Monday. Bessent also spoke with Robert Jenrick, a senior Reform UK politician who had urged Washington to abandon restrictions or grant Britain an exemption.

European diesel prices have reached records, triggering street protests.

Washington has pressed European governments to draw down diesel reserves and discussed asking China to raise refinery production.

Other proposals include additional Jones Act waivers to facilitate shipments between U.S. ports, federal or state tax relief, and easing restrictions on cheaper dyed diesel used by off-road vehicles.

War Drives Fuel Shock

The crisis has unsettled Trump’s promise to deliver cheaper fuel and expand American energy exports.

The Iran war, now in its seventh month, has tightened global supplies despite high U.S. oil production and intensive refinery operations.

Brent settled at $102.59 a barrel on Tuesday, nearly 40% above its level when the war began in February.

Ukrainian strikes on Russian refineries have added to the diesel shortage.

Trump recently rejected an Iranian proposal to reopen the Strait of Hormuz.

Gulf oil shipments have recovered somewhat but remain substantially below prewar volumes, when the waterway carried roughly 20% of global oil supplies.