Trump backs diesel export ban as record prices, Iran risk collide

Diesel just punched through $6.50 a gallon at retail, and Washington's response — floating an export ban — has traders more spooked than the price itself. Refiners love the crack spread; policymakers are eyeing the exit door.

Diesel cracks are blowing out ($117/bbl) alongside a fresh retail record above $6.50/gal, driven by Ukrainian strikes on Russian refining capacity and the US-Iran standoff disrupting trade routes including the Strait of Hormuz. Trump's endorsement of a US diesel export ban sent gasoline rallying to four-month highs while diesel sold off, but analysts across Reuters and TACenergy warn the move would hurt rather than help fuel markets. Elsewhere, Saudi Arabia is restarting its East-West pipeline, Macron is pushing the EU to loosen diesel/kerosene rules, and SAF offtake deals keep stacking up in Europe and the US.