export

The UK is in talks with US authorities over a potential stoppage of diesel exports and has started preparing for a ban, Chancellor John Healey has told BBC News.

Diesel prices in the UK reached a new high on Monday due to supply pressures springing from the US-Israel conflict with Iran and Russia’s war with Ukraine.

Fuel prices are rising globally and US President Donald Trump has threatened to ban diesel exports, stating at the weekend: “We’re thinking about it very seriously.”

Healey, who admitted that UK diesel prices are “extreme”, said the government was in discussions with the US, adding: “We’re also making the provision that we may need to and we have our own stocks in the UK.”

Speaking on the sidelines of the annual Labour Party Conference in Liverpool, Healey said: “We work very closely with the Americans.

“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 UK depends on the US for around a third of its diesel imports and a ban would send prices even higher.

US sources suggest that Trump is considering a ban to attempt to bring down prices for domestic consumers ahead of the critical midterm elections.

The BBC has contacted the White House for comment.

In the UK, the average price for a litre of diesel reached 199.33p on Monday, according to the RAC motoring organisation, surpassing a previous high of 199.09p in June 2022 after Russia launched its full-scale invasion of Ukraine.

Petrol prices are also still rising, with a litre currently costing 174.23p.

Over the past seven months, the Iran war has severely disrupted the production and transportation of wholesale oil across the region, causing the price of fuels made from oil to surge.

The RAC said diesel prices had entered “uncharted territory” and served as a reminder of “just how exposed the UK is to events occurring far away”.

Healey said he was “very aware” of these cost of living pressures as he prepared what he called a “breathing space” Budget on 28 October.

A freeze on fuel duty, first implemented by the Conservative government in 2022, is due to expire at the end of the year. Duty is scheduled to increase by 3p in January and a further 2p in March.

Healey said: “Fundamentally, what we need is a settlement in the Middle East. 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.”

For the US economy, a ban could deliver short-term relief at the pump by flooding the domestic market with excess supply.

However, energy analysts warn it could backfire.

David Fyfe, chief economist at Argus Media, notes that cutting off American supply would likely cause international prices to skyrocket.

That would push up global freight, food, and industrial costs, ultimately “feeding inflation back into the global economy”.

“At a stroke, the US’s reputation as a reliable supplier of energy to the world would be shot,” Fyfe added.

Removing more than a million barrels of daily American supply would trigger a fierce bidding war among importing nations in Latin America and Europe.

Sarah Raffoul, analytics manager at Argus Media, noted that while higher international prices would eventually curb demand, the immediate gap would severely strain trade relationships and accelerate global inflation.

Trump’s administration considers measures boosting dyed diesel and pushing for state tax relief, but avoids an outright export ban; such measures aim to ease domestic diesel prices without severe supply crunches or export bans that could spike prices further.

Diesel prices have hit record highs as the tensions between the United States and Iran, along with the war between Russia and Ukraine, disrupt key oil and fuel trade routes.

On Friday, the average price for a gallon (3.79 litres) of diesel was $6.50, up from $5.61 a month earlier, according to the American Automobile Association (AAA), which tracks fuel prices daily.

The spike has prompted the administration of US President Donald Trump and Republican lawmakers to consider restricting US diesel exports ahead of upcoming midterm elections.

A Reuters/Ipsos poll conducted in August found that 47 percent of voters said the cost of living was the single most important factor in deciding how they would vote in the midterms — more than twice the share who cited the next-most important issue, “democratic values and norms”.

A new Marist poll also found that Americans have more confidence in Democrats than Republicans to handle the economy, with 42 percent choosing Democrats compared with 34 percent for Republicans.

Amid that voter sentiment, US Energy Secretary Chris Wright said on Thursday that he was in touch with major oil refiners to gauge interest in a potential voluntary restriction on diesel exports, according to the Reuters news agency.

That followed remarks by Trump on Tuesday that he supported restricting diesel exports from the US, the world’s largest diesel exporter.

Energy analysts and industry groups have warned that an export ban could have unintended consequences, potentially pushing up fuel prices in the US and abroad.

Why are diesel prices so high?

Even though the US is the world’s largest diesel exporter, diesel is traded on a global market.

Disruptions to refineries in Russia and the Middle East have reduced the amount of fuel available worldwide, putting more pressure on US producers to fill the gap. In Russia, for example, drone attacks have damaged major refineries, forcing a cutback or halt in production.

“While US refineries are running at full tilt and higher than normal, the global gaps remain,” Rachel Ziemba, senior adjunct fellow at the Center for a New American Security, told Al Jazeera.

It comes as US diesel supplies are also shrinking. As of September 11, inventories had fallen to 107.9 million barrels, the lowest in more than four decades, according to the US Energy Information Administration.

With global supplies tightening, diesel prices have risen around the world — including in the US. Because American producers can sell their fuel into the global market, they are drawn to the soaring global prices rather than simply setting a lower price for domestic consumers.

Why is the US considering an export ban?

In Washington, DC, leaders have flirted with the idea of pushing US companies to stop or slow exporting diesel.

Republicans have been pushing for a slowdown or outright ban of exports in an effort to lower costs for consumers ahead of the pivotal midterm elections, where cost of living is becoming a critical issue.

Such a move, they hope, would reduce local diesel prices, which is significant as diesel is used in trucks to haul food and most products, Ziemba said, adding that US diesel exports are equivalent to about 40 percent of domestic consumption.

On Tuesday, Chuck Grassley, a Republican from Iowa, called on the president to put in place a temporary halt on exports.

“I encourage President Trump to put a temporary embargo on diesel exports through executive action,” Grassley said.

Republican Senator Dan Sullivan of Alaska made a similar call: “The cost of diesel is just too damn high. I’m calling for a temporary pause of American diesel exports so that we can rebuild our reserves ahead of winter,” Sullivan said in a statement on Tuesday.

In the House of Representatives, Congressman Tim Burchett of Tennessee introduced two bills that would restrict US diesel exports: One would impose a ban through January 2027, while the other would restrict exports if the national average price reaches $5 a gallon.

The administration has not made any official policy announcements, and the White House told Al Jazeera that the president is evaluating all options.

Oil and gas industry experts say that a ban could drive up prices rather than bringing them down.

“Diesel trades on a world market, just like corn. farmers don’t sell cheaper to Americans, and refiners can’t either since they buy crude at global prices. force a lower price and they’ll make less diesel. less supply means higher prices, not lower,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a post on X.

How would an export ban work?

A ban would prevent or restrict US refiners from selling diesel to buyers overseas, theoretically leaving more fuel available in the domestic market.

Analysts at Wood Mackenzie, a research and consulting firm, say that keeping more diesel stateside would ultimately fill up US storage tanks but also force refineries to cut production. That could affect other markets that rely heavily on US fuel, including Latin America and Europe, forcing them to compete with other global buyers for supplies and driving up prices for the global market.

Wood Mackenzie says China is the only major producer with enough spare refining capacity to potentially make up much of the shortfall.

“China is currently the only country with material spare refining capacity that could cover the loss of US refinery throughputs. However, China may well decide it is not in its interest to intercede,” analysts said.

Wood Mackenzie has warned that a ban could quickly fill US diesel inventories, forcing refiners to cut crude runs and potentially increasing US petrol imports.

That was also the view of an S&P Global analysis, which found that a complete ban could also mean that production would be reduced as storage capacity is filled up with unsold diesel. According to the analysis, that could lead to production cuts of as much as 750,000 barrels a day, which could put the US into being a net importer of petrol in the fourth quarter of this year.

Who would an export ban affect?

An export ban would affect US refiners and consumers, as well as countries that rely on US diesel.

“They [export bans] may provide temporary relief, but diesel is a global commodity. Treat one part of the system, and the effects travel elsewhere. Trade-offs are inevitable. Refiners are unlikely to cheer a blanket ban. Voluntary, controlled export reductions would generally be less disruptive in the short term,” Maksim Sonin, visiting scholar at Stanford University’s Precourt Institute for Energy, told Al Jazeera.

Disruptions to US exports could reduce the amount of fuel available on the global market. Wood Mackenzie analysts say countries in Europe and Latin America that rely heavily on US fuel could be forced to compete with other producers for supplies.

“If implemented, it would lead to European and Asian product prices increasing as the buyers of US fuel, mostly in Latin America, scramble to find new supplies, bidding up supplies. European crack spreads could widen, and overall we might see more disruptions,” Ziemba added.

“Given these issues, the US may opt for a mixture of carrots and sticks aiming to incentivise refineries to keep producing, perhaps including penalties if they cut production. There may be voluntary export quotas rather than a formal ban, and there may be exemptions for countries that provide crude oil to the US, like Mexico,” Ziemba said.

That could put pressure on consumers not only at the petrol pump but in the skies as well.

Airlines for America, an airline industry trade group, has also warned that an export ban could lead to higher prices for airlines and travellers, according to the Reuters news agency. The trade group did not respond to Al Jazeera’s request for comment.

The broader concern from analysts is that restricting exports could reduce US refinery production rather than simply redirecting diesel to US consumers, potentially putting upward pressure on fuel prices both domestically and internationally.

“It’s unlikely to help US consumers much given how it fails to solve underlying problems and could backfire if refineries hold on to production. The best way to address this is to end the conflicts prompting the shortages,” Ziemba said.

VICTORIA, British Columbia — A Canadian provincial premier called a snap election Tuesday, saying President Trump’s attacks on Canada are threatening jobs, businesses and the country’s ability to determine its own future.

The provincial election comes after U.S.-Canada trade talks broke down, deepening a dispute that has brought steep tariffs. British Columbia Premier David Eby effectively put Trump on the ballot, arguing the election offers British Columbians a choice between his government’s efforts to resist U.S. economic pressure and opponents he accused of embracing “MAGA-style politics.”

“Join us saying hell no to Trump and to his politics,” Eby said in announcing the Oct. 24 election.

Eby said Trump’s trade war and threats against Canada have changed conditions in British Columbia enough to justify an election two years early.

“Donald Trump is attacking our workers, he’s targeting our businesses, and he is threatening our sovereignty,” Eby said. “He’s threatening our ability to make decisions for ourselves.”

The left-leaning New Democratic Party leader said British Columbia needs to build a “firebreak” against Trump’s economic policies by protecting workers and businesses, reducing its dependence on the United States and finding new markets for Canadian products.

“This isn’t just a trade dispute,” Eby said. “It’s about the life that you and your family are building.”

Eby said British Columbia’s exports to the United States have fallen 4% while exports to other markets have risen 16%.

He also vowed to keep American alcohol off provincial shelves, saying “not one drop of Jack Daniels” would return until Canada gets a fair deal with the United States.

The New Democrats won a narrow majority in the 2024 provincial election, giving Eby enough seats to govern without relying on another party, and he was not required to call another election until 2028.

The election call also comes amid turmoil among the opposition British Columbia Conservatives. Kerry-Lynne Findlay resigned as party leader Sunday following a wave of defections and expulsions from her caucus. Lorne Doerkson was named interim leader.

Caracas, September 9, 2026 (venezuelanalysis.com) – The president of Venezuelan state oil company PDVSA, Héctor Obregón, backed the recent agreement with the Trump administration as a “win-win relationship” on Monday.

“We signed Productive Participation Contracts where we put forward crude reserves and qualified personnel. What were we missing? Foreign capital,” he said in an interview with Unión Radio.

Productive Participation Contracts (CPP) are concession-type agreements whereby energy projects are turned over to private corporations which run operations and commercialization while paying a negotiated portion of proceeds to the Venezuelan state.

The recent oil deal, hailed by Trump as “the biggest in history,” will see Venezuela transfer 17 prime oilfields, containing 65 billion in proven crude reserves, to private operator NABEP. The projects are split between extra-heavy crude fields in the Orinoco Oil Belt and mature light- and medium-crude ones in the Lake Maracaibo basin.

Obregón insisted on the mutual benefits, explaining that Venezuela will collect taxes and royalties while the US will be able to supply its domestic demand. Regarding the agreement’s timeline, which the White House has claimed to span 100 years, Obregón stated that the concession is for 25 years but may be renewed for similar periods “as many times as necessary.”

After initially vowing that NABEP would invest US $100 billion in the oilfields, a figure repeated by Venezuelan officials, the Trump administration changed the pledge to “more than $10 billion.” 

According to a White House “fact sheet” on the deal, the US State Department will be able to secure 20 percent of the NABEP’s output at cost and have a right of first refusal over the remaining 80 percent.

Obregón suggested that Washington could secure additional benefits, indicating that a reference $65 barrel would have a $15 “sales discount.” The oil official likewise estimated capital and operational expenditures at $12-15 and stated that NABEP would never secure a smaller portion of proceeds than the Venezuelan state, with the percentage increasing for greenfield projects.

The $19 revenue estimate offered by Venezuelan officials as the government’s take for a reference $65 barrel is significantly lower than the benchmarks established under the 2001 Hydrocarbon Law approved by former President Hugo Chávez and subsequent reforms. Under the previous framework, only PDVSA or PDVSA-majority joint ventures were allowed to operate oilfields, with the Venezuelan state securing as much as $0.80 for every $1 of oil proceeds in the latter case.

NABEP, owned by Venezuelan oil mogul Alejandro Betancourt, will grant a 35 percent stake at no cost to the Pentagon’s Office of Strategic Capital (OSC). Washington will likewise have veto power over NABEP’s board of directors. Betancourt has faced corruption accusations in Venezuela, with authorities issuing an arrest warrant in 2022 that was later dropped. For its part, the Trump administration has sought to halt money laundering investigations against the Venezuelan businessman both in the US and in Switzerland.

Obregón went on to acknowledge that Venezuelan export revenues are currently deposited in a US Treasury account before US officials decide on the disbursement amounts and timings back to Caracas.

“There is a state-to-state agreement to receive Venezuelan funds in Treasury accounts,” he disclosed, echoing Washington’s assertion that its seizure of Venezuelan export proceeds aims to protect them from potential creditor claims. 

“The channeling of revenues through the US Treasury could be considered a protection measure, since there are debt claims against PDVSA and creditors could target our accounts,” he argued.

Neither US nor Venezuelan authorities have disclosed the amount of revenue collected and disbursed back to Caracas. Luigi Pisella, an advisor to Acting President Delcy Rodríguez, claimed that the Trump administration is deducting the costs of its January 3 military operation against Venezuela from the country’s funds.

The costs of goods and services supplied by US-based exporters to Venezuela are also being directly deducted from the funds held in the Treasury accounts.

Apart from controlling export earnings, US officials have publicly participated in a pro-business overhaul of the Caribbean nation’s hydrocarbon law and regulations, including reviewing drafts of the legislation.

The Trump administration has maintained sanctions on the Venezuelan oil industry while issuing licenses for select Western corporations. US Energy Secretary Chris Wright oversaw the signing of agreements with Chevron, Eni, and smaller US-backed energy firms during a visit to Caracas earlier this month.

Edited by Lucas Koerner in Philadelphia, USA.