Trump announces the Russian diesel agreement... and the Treasury grants an immediate license

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US President Donald Trump announced an agreement with his Russian counterpart, Vladimir Putin, to supply quantities of diesel to the American and global markets, while the US Treasury Department announced the issuance of a temporary license allowing the immediate supply of Russian diesel to global markets.

Trump said, in a post on his “Truth Social” platform, that he concluded a conversation that he described as “very successful” with Putin, during which they agreed that Russia would immediately provide more than 300,000 tons of diesel, followed by additional shipments in stages.

According to the US President, Russia will import 500,000 tons during November, then one million tons immediately after that. He added that Moscow would provide another three million tons within a short period, depending on the condition of Russian diesel refineries.

In a move that coincides with Trump's announcement, the US Treasury Department said that a temporary license allows the immediate supply of Russian diesel to global markets. The details contained in the announcement did not include the duration or conditions of the license and the scope of transactions covered by it.

Trump's circular also did not specify precise dates for the shipments that will follow the November batch, or how the quantities would be distributed between the American and global markets, nor did it address supply prices.

Trump linked the expected Russian supplies to what he described as the United States' "complete control" over the Strait of Hormuz, expecting diesel prices to fall to Americans and the world at a rapid pace and to record levels.

He stressed that reducing prices for Americans, especially farmers, ranchers, and truck drivers, is his top priority, describing the announcement as large and important.

The announcement comes after US measures aimed at increasing the supply of diesel and reducing its cost. The White House explained, in a statement dated October 5, that Trump signed an executive order temporarily allowing the use of diesel normally reserved for off-road equipment in road vehicles.

The order includes postponing the payment of the federal tax applied to this use until the end of the year, without interest or fines, as part of the administration’s efforts to reduce fuel costs.

Expectations of lower prices remain estimates put forward by Trump, while the implementation of the announced supplies is linked to delivery dates and the ability of Russian refineries to provide quantities, especially the largest batch of three million tons.

At the conclusion of his post, the US President touched on the Iranian file, stressing that Iran will not possess a nuclear weapon, without providing additional details or clarifying the connection of this file to the diesel supply agreement.