Trump Says Russia Will Supply Diesel Under Putin Deal as Treasury Eases Sanctions; Diesel Futures Fall

President Donald Trump said on Friday that Russia agreed, after a call with Vladimir Putin, to supply more than 300,000 tons of diesel to the U.S. and global market immediately, 500,000 tons in November and 1,000,000 tons "immediately thereafter," with another 3 million tons possible depending on the condition of Russia's refineries. The Treasury Department's sanctions office issued a temporary general license allowing the sale and delivery of Russian diesel through April 7, 2027, far longer than the 30-day waivers it has typically used. Putin's own statement confirmed only Russia's "readiness to supply" oil and oil products, without volumes, so the figures so far are Trump's.

Diesel futures fell about 4% on Friday, to roughly $4.67 a gallon, while crude barely moved: Brent settled up 0.4% at $104.72 and WTI up $0.36 at $91.85. Diesel prices have climbed almost 70% since the Iran war began in February, according to NBC, and the deal lands as Hurricane Isaias shuts in most Gulf of Mexico oil output. Russia's own ban on most diesel exports, imposed after Ukrainian drone strikes on its refineries, runs through the end of October, and there is no confirmation yet that it has been lifted, which makes the delivery schedule the key uncertainty.

Two related moves broaden the push. Reuters, citing three industry sources, reported that Trump will issue a directive in the coming days, possibly a presidential memo, telling department heads to find ways around state and local barriers to energy production and to use the Defense Production Act to raise fuel output. The Financial Times reported that Trump pressed Mexican President Claudia Sheinbaum for more tie-ups between U.S. and Mexican energy companies, modeled on South Korea's pledge to buy $100 billion of U.S. energy, with two sources saying the demand has contributed to delays in trade talks.

What to watch: whether Moscow lifts its export ban and cargoes actually load, whether the sanctions license draws pushback in Congress or from allies (Ukrainian President Volodymyr Zelensky condemned the deal), how diesel prices trade into the November 3 midterm elections, and whether a directive overriding state rules survives legal challenges.