Trump Floats Diesel Export Curbs Amid Fuel Price Surge Ahead of Midterms

US President Donald Trump has proposed limiting diesel exports as fuel prices surge ahead of the midterm elections. The move could exacerbate a global supply crunch, leaving countries such as Australia more exposed.

Fuel prices have increased by 50% since the US-Iran conflict began, putting pressure on households, particularly in rural America where Republicans are strong. Inflation is at 3.4%, above the Federal Reserve's target of 2%. The Fed has raised interest rates for the first time in three years.

The proposal comes as global diesel markets face severe strain. The US produces about 20% of the world's diesel supply, while another 20% is blockaded in the Strait of Hormuz. Russia's full ban on diesel exports has also been extended due to Ukraine's attacks on Russian oil production.