Trump announces deal to import Russian diesel as US fuel prices climb

The US Treasury Department has moved to allow Russian diesel into global markets after President Donald Trump announced an agreement with Russian President Vladimir Putin to increase fuel supplies.

Trump said on Friday that Russia would provide more than 300,000 tonnes of diesel immediately, followed by 500,000 tonnes in November and another one million tonnes thereafter. He said the additional supplies would help bring down fuel prices in the US and elsewhere.

The announcement signals a possible shift in Washington's policy towards Moscow, which has faced sweeping US sanctions over its war against Ukraine. Trump signed new sanctions legislation last month.

In a post on Truth Social, Trump linked the proposed shipments to his efforts to reduce fuel costs, describing lower prices as his top priority. He said American farmers, ranchers and truckers would particularly benefit from cheaper diesel.

Fuel prices have risen sharply since the US and Israel launched war on Iran at the end of February. The conflict has also heightened concerns about energy supplies and shipping through the Strait of Hormuz.

According to the American Automobile Association (AAA), the price of diesel in the US climbed to a record $6.52 per gallon on September 22. It stood at $6.23 on Friday.

The rise in fuel costs has become a political concern for Trump and the Republicans ahead of the November midterm elections, with voters facing higher expenses.

The latest announcement could also affect plans for further action against Russia. The Treasury Department said shortly after Trump's statement that it was issuing a temporary licence to permit Russian diesel supplies to the global market.