UK in Talks with Washington as Trump Weighs Diesel Export Ban

Britain is urgently engaging with US officials over the possibility that President Donald Trump could halt diesel exports, a move that would deepen an already severe fuel crisis in the UK, Chancellor John Healey has confirmed.

Speaking to BBC News, Healey disclosed that the government has begun contingency planning for the scenario in which American supplies are cut off, acknowledging that the situation could deteriorate quickly.

Diesel prices in the UK climbed to an unprecedented level on Monday, driven by supply disruptions linked to the US-Israel conflict with Iran and Russia's ongoing war in Ukraine. According to the RAC motoring organisation, the average cost of a litre of diesel reached 199.33p, eclipsing the previous record of 199.09p set in June 2022, shortly after Moscow launched its full-scale invasion of Ukraine.

Petrol prices are also continuing to climb, with a litre now priced at 174.23p, adding to the financial strain on motorists and businesses across the country.

Trump indicated over the weekend that he was giving serious consideration to restricting diesel exports. "We're thinking about it very seriously," the president said, according to the source article. US sources suggest the motivation is an attempt to lower fuel costs for American consumers ahead of the critical midterm elections, with domestic political pressure mounting.

The implications for the UK are considerable. Britain relies on the United States for roughly one-third of its diesel imports, meaning a ban would almost certainly push already record-high prices even further and intensify cost-of-living pressures.

Healey, who described UK diesel prices as "extreme", said the government was working closely with American counterparts. "We're also making the provision that we may need to and we have our own stocks in the UK," he said, indicating that officials are preparing for the possibility of a supply interruption.

The chancellor was speaking on the sidelines of the annual Labour Party Conference in Liverpool, where fuel costs and household budgets have dominated discussions. He stressed that the government's preferred outcome remains a diplomatic solution to the conflicts driving the price surge.

"We work very closely with the Americans," Healey said. "In the end, we're also working with the Americans where we can try and put in place what will solve this, or at least significantly ease it, which would be a diplomatic settlement [and] an end to the fighting with Iran."

The source article notes that the BBC has contacted the White House for comment, but no response has yet been reported.

The RAC said diesel prices had entered "uncharted territory" and described the situation as a reminder of "just how exposed the UK is to events occurring far away." The organisation's warning highlights the vulnerability of Britain's energy supply chain to geopolitical shocks beyond its borders.

Over the past seven months, the Iran war has severely disrupted the production and transportation of wholesale oil across the region, causing prices for fuels derived from oil to surge. The combined effect of the Middle East conflict and the war in Ukraine has created a volatile global energy market that shows few signs of stabilising.

Healey said he was "very aware" of the cost-of-living pressures facing households as he prepares what he described as a "breathing space" Budget scheduled for 28 October. The budget is expected to address immediate financial concerns while the government navigates the fuel crisis.

A freeze on fuel duty, first introduced by the Conservative government in 2022, is due to expire at the end of the year. Under current plans, duty is scheduled to rise by 3p in January and by a further 2p in March, which would add further costs for drivers already struggling with record pump prices.

Healey reiterated that a lasting solution depends on stabilising the Middle East. "Fundamentally, what we need is a settlement in the Middle East," he said. "We need an easing of the pressure of costs on business, the costs on households and on ordinary families that we see at the pumps in the most extreme level today for diesel."

The chancellor's comments underline the balancing act facing the UK government: managing immediate supply risks from a potential US export ban while pursuing longer-term diplomatic efforts to end the conflicts driving global fuel prices higher.