Global Energy Crisis

British Chancellor John Healey will set out the country’s autumn budget, the government’s tax and spending plans, the first under Prime Minister Andy Burnham’s premiership amid high inflation and government spending levels.

While the budget will be announced in parliament on Wednesday at 12.30 GMT, speculation about what it will lay out has ranged from a series of tax announcements to commitments to defence spending.

But the country continues to deal with a rising cost-of-living crisis and energy bills are expected to see their biggest rise in four years in January due to the ongoing conflict in the Middle East.

As total United Kingdom borrowing broke through the 3 trillion pounds ($3.99 trillion) barrier for the first time in September, the country is already spending 100 billion pounds ($133bn) each year just on servicing that debt.

Despite that challenge, the chancellor has said the budget will move “money and power out of Westminster and into every postcode around Britain”.

In a speech last month, Healey said that he and Burnham were in “lockstep” in meeting fiscal rules, “to balancing the books, with a buffer to protect against uncertainty, to control borrowing to bear down on inflation, and reducing long-term pressures on our public finances”.

Following the two budgets from former Chancellor Rachel Reeves, which included big tax and spending increases, Healey’s budget is expected to take a more “steady as she goes” line, which some say is the wrong approach.

Here’s how he will be expected to achieve that.

Defence spending

On Monday, Burnham said Healey would set out a plan to fully fund the government’s defence plans and commitments, telling ITV’s Good Morning Britain that his government’s first challenge was financing the already announced defence investment plan.

Announced in June, the plan is backed by 298 billion pounds ($396bn) of investment and will transform the armed forces as the country moves to “warfighting readiness” and stepping up “European security”, according to a government policy paper.

But Burnham said it was “crucial that we have a funded plan that we can then implement, and we will set out more details on Wednesday as to how we’ve done that”.

He added that NATO commitments of spending 3 percent of gross domestic product (GDP) on defence spending by 2030 and 3.5 percent by 2035 are included in the pathway, explaining that national security issues were “at the top of the priority list”.

As it stands, Britain spends about 2.6 percent of its GDP on defence.

The Guardian reported that on defence spending, Healey aims to close a 4.7-billion-pound ($6.2bn) funding gap in the government’s plan inherited from the previous Labour Party leader, with cuts to other departmental budgets likely to fund it.

Inflation

Government borrowing and inflation continue to rise, which is a potential spanner in the works for proposed spending.

Last week, UK inflation and government borrowing both hit their highest levels in a year.

According to the Office for National Statistics, borrowing was nearly 25 billion pounds ($33bn) last month alone, “a little higher than a year earlier, as spending, including higher debt interest costs, increased more than government income, partly reflecting the impacts of inflation”.

ONS added that in the financial year to September 2026, borrowing remained below the same period last year, but it was higher than the Office for Budget Responsibility’s forecast.

However, debt at the end of last month exceeded 3 trillion pounds ($3.99 trillion), much of it due to the Iran war and the fallout from the closure of the Strait of Hormuz as the government borrowed more than expected.

According to Jasper Kanter, a professorial research fellow in ecological economics at Aberystwyth Business School, for the government to grow the economy without raising inflation levels, there needs to be an understanding of what kind of economy is created.

“The strongest policies improve prosperity, resilience and sustainability at the same time,” Kanter said.

“Growth is less likely to be inflationary when it comes from increasing the economy’s productive capacity rather than simply boosting spending. Measures that improve skills, reduce energy dependence, strengthen local economies and regenerate ecosystems are likely to deliver more lasting benefits than short-term stimulus,” he added.

Moreover, Helen Miller, director of the Institute for Fiscal Studies, said in a media release ahead of the budget that Healey “faces a forecast in which borrowing is still expected to fall in coming years, and the fiscal rules are still being met”.

“Despite that, a ‘steady-as-she-goes’ budget is not an option available to the chancellor. Choosing to stay the course with the inherited tax and spending plans would mean allowing inflation to blow departments’ spending plans off course,” Miller said.

Tax on banks, online sellers

The budget is also expected to reveal new taxes on banks and online marketplaces such as Amazon, Temu and eBay, as well as a funding boost for mayoralties and local authorities.

The biggest four banks collectively made about profits of 15 billion pounds ($19.9bn) in the first six months of this year. Trade unions are calling for higher taxes on those earnings, the BBC has reported.

According to the BBC, the Treasury is leaning towards changing a 2023 surcharge rate on banks, which would raise about 2 billion pounds ($2.6bn).

On marketplaces such as Amazon, Healey is reportedly looking to crack down on foreign sellers who avoid paying VAT – a UK sales tax – which is expected to raise as much as 1 billion pounds ($1.3bn) and help fund business rate cuts for high street shops, The Times reported.

Paying for social care and benefits

According to The Guardian newspaper, Healey is expected to allocate about 1.42 trillion pounds ($1.8 trillion) this year for day-to-day spending and public investment, with about 100 billion pounds ($132.8bn) going on debt interest.

Kanter, of Aberystwyth Business School, told Al Jazeera that he expects “targeted support rather than large-scale tax cuts or rises” in the budget announcement.

“The government appears keen to signal empathy with the pressures many people are facing. Addressing the harsh cliff edge in carer’s allowance and expanding parental pay are good examples of this,” he said.

Some of the budget’s contents have already been announced, including ending the carers’ allowance limit and removing tariffs on a range of food items, including chocolate and beans, to make them cheaper for shoppers.

Pensioners are also expected to be shielded from income tax through the introduction of a new personal allowance, while Healey is expected to add another 1 billion pounds ($1.3bn) to the 39 billion pounds ($51.8bn) planned for social and affordable housing in England over the next decade.

“Pensioners will benefit from another substantial increase in the state pension, while low-paid workers will benefit from increases in the minimum wage. For most households, the bigger determinants of living standards will remain wages, inflation and energy costs rather than any new tax measures announced in the budget,” Kanter explained.

Last month, Burnham announced a new national care service to provide free personal care for elderly people. As costs of care for the elderly have soared in the UK, this was a major issue from the outset of Burnham’s premiership.

He said the plan would be introduced in phases and would be fully funded from public spending and savings from scrapping the state pension triple lock – an annual increase in state pension that goes up with inflation, wages or a fixed rate of 2.5 percent, whichever is highest.

A report on how this will be implemented is due in summer 2027.

Energy bills

Amid high gas and oil prices as a result of the US-Israeli war with Iran and the subsequent closure of the Strait of Hormuz, energy prices worldwide have increased, with Brent crude futures at $115.90 a barrel on Wednesday.

In the UK, energy prices are predicted to reach nearly 2,000 pounds ($2,655) a year for households in January after energy consultancy Cornwall Insight projected in its latest forecast last month that the government’s cap on energy prices is expected to increase by 16 percent.

On energy bills, reports suggest the chancellor is expected to announce help for households in the budget by scrapping standing charges for energy supply, among other things.

Oil prices have climbed towards their highest levels in five months as attacks on tankers in and around the Strait of Hormuz mount and efforts to end the United States-Israel war on Iran are deadlocked.

Brent crude, the international benchmark, rose by more than $2 to $110.85 a barrel on Wednesday, close to a five-month peak.

A day earlier, Iran’s Islamic Revolutionary Guard Corps (IRGC) said two tankers were “set ablaze” after hitting mines at what it called an illegal crossing point in the strait. Then, on Thursday, the IRGC said it hit seven more tankers although Washington dismissed the claim. In a statement, the IRGC said four of the vessels were transferring oil when they were targeted and caught fire overnight.

In September, the Houthis, an armed group also known as Ansar Allah (Arabic for Supporters of God), seized territory in Yemen close to the Bab al-Mandeb strait, a critical chokepoint into and out of the Red Sea and a gateway to Egypt’s Suez Canal.

The escalation came as the world’s emergency oil stocks, already tapped heavily since the Iran war began on February 28, sit at their lowest levels in decades.

Al Jazeera put a question to analysts: If fighting resumes in full, the Strait of Hormuz is shut off completely and Houthi attacks choke off Bab al-Mandeb, how long could the world’s reserves last?

Here’s what you need to know:

What emergency oil reserves are there?

Strategic oil reserves are stockpiles of crude oil and fuel held by governments or by companies on their behalf for use in a supply emergency.

The International Energy Agency (IEA), which was established in 1974 after the Arab oil embargo, coordinates most of them. Its importing members must hold at least 90 days of net imports. China and India are not members.

How much of the reserves has already been released this year?

A record amount.

On March 11, days after the start of the US-Israel war on Iran, the IEA’s 32 members agreed to make 400 million barrels available from emergency supplies, more than double the volume released after Russia’s full-scale invasion of Ukraine in 2022.

The US pledged 172.2 million barrels from its Strategic Petroleum Reserve (SPR) and Japan 79.8 million, according to IEA figures.

The SPR has since fallen to 283 million barrels, its lowest level since October 1982, according to the US Department of Energy.

Much of that oil was lent rather than sold and must be returned with extra barrels, according to the US Energy Information Administration.

How much oil is left?

Far less than before the war began in February, and not all of it can be used.

Aaron Kildow, a senior crude oil analyst at Sparta Commodities, told Al Jazeera that global strategic stocks excluding China and Iran have fallen by nearly 327 million barrels since the end of December 2025 with the US, Europe and Japan accounting for about 95 percent of the draw.

He estimated that leaves only about 400 million barrels of usable reserves worldwide, excluding China’s stockpile, which is unlikely to be exported, and Gulf stocks, which could be cut off by a total closure of Hormuz.

Nearly half of these available stocks are in Japan.

Europe has about 76 million barrels uncommitted, but members such as Germany are holding some back for a local emergency, Kildow said.

“Europe is the real wildcard, both on timing and willingness,” Kildow said.

Meanwhile, China’s onshore crude stocks stand at 1.13 billion barrels, down from 1.23 billion in late February but still enough for about 80 days of refinery intake, Muyu Xu, a senior crude oil analyst at the analytics firm Kpler, told Al Jazeera.

India’s reserves cover just eight days of its imports, the Reuters news agency reported.

What would a full closure of Hormuz and Bab al-Mandeb mean?

Before the war, about one-fifth of the world’s oil and liquefied natural gas supplies, or roughly 20 million barrels of oil a day, passed through the Strait of Hormuz.

Saudi Arabia has increased the amount of crude it transports from its oilfields in the east to its Red Sea port of Yanbu in the west via the East-West Pipeline, thereby bypassing Hormuz.

But there have been strikes on that pipeline, and tankers heading south from Yanbu must pass through Bab a-Mandeb, where the Iran-backed Houthis declared a blockade on Saudi shipping in July.

Only a confirmed 373,000 barrels a day of Saudi crude have transited Bab al-Mandeb so far this month, the lowest level since February, Xu said, with most Yanbu cargoes now heading north via Egypt instead.

If Hormuz were shut and the Houthis blocked all Saudi tankers, Gulf producers could export only through a few pipelines and Yanbu’s northbound route, Xu said.

That would leave about 7.5 million barrels a day of Middle Eastern crude, against 16.8 million now, a shortfall of about 9.3 million barrels a day, she estimated.

“If such attacks occur, the supply disruption could be even more severe and prolonged,” Xu said, referring to strikes on oilfields, terminals and pipelines.

So how long would reserves last?

Not for long – possibly just weeks, according to experts.

If Kpler’s estimated shortfall had to be covered entirely from the roughly 400 million usable barrels that Kildow identified, they could not, in practice, be released that fast. Japanese and South Korean reserves can move quickly, Kildow said, but US barrels are staged over three months, and Europe’s contribution is uncertain.

Chris Beauchamp, chief market analyst at IG Group, said the world was fortunate after the first closure. “The salient feature of March and beyond was how a crisis didn’t actually develop. We got away with it,” he said.

“I don’t think the global economy will be as lucky next time if there is a protracted conflict,” Beauchamp said. “A month or two is all we have.”

The world would not literally run out of oil. Instead, prices would rise until enough demand disappeared. “One hundred fifty dollars [per barrel] becomes a very distinct possibility, which then sees significant demand destruction,” Beauchamp said.

The sharpest squeeze would be on diesel, which is already nearly double the price of crude, the IEA said.

Refiners would compete for crude grades rich in diesel, “a cost that ultimately lands on consumers,” Kildow said.

Who would feel it first?

Asian importers with thin reserves.

Most Gulf exports in September and October went to Asian buyers, and India and Pakistan are among the most exposed, Kildow said, adding that their nearest alternative supply, from West Africa, is 25 to 28 days away by sea, compared with two days from Fujairah in the United Arab Emirates.

“The squeeze won’t hit uniformly. It lands fastest and hardest where reserves are thinnest and substitute supply is farthest away,” Kildow said.

Who would gain?

Oil producers far from the Gulf.

In the second quarter of this year, as the US-Iran war was under way, ExxonMobil reported earnings of $14.5bn, its highest in four years while Chevron posted $12bn, its best in six years and Shell more than doubled its earnings to nearly $10bn. Their profits are largely down to the high oil prices.

A second shock would send refiners scrambling for supplies from the US, Latin America, West Africa and Russia, Xu said.

“This would allow non-Middle Eastern producers to benefit from higher crude prices, potentially alongside lower transportation costs,” she said.

In August, US President Donald Trump said companies such as ExxonMobil and Chevron were “making too much money based on a shortage”.

French president meets Crown Prince Mohammed bin Salman in Riyadh to discuss energy, security, and infrastructure as cost-of-living protests rage at home.

French President Emmanuel Macron visited Riyadh on a surprise “solidarity” visit, making him the first Western leader to touch down in Saudi Arabia since the Houthis intensified their attacks this month.

The unannounced trip comes as Saudi Arabia agreed to supply extra diesel to France “for as many months as necessary”, the Elysee Palace told the AFP news agency on Wednesday.

The visit aims to “demonstrate France’s solidarity with the kingdom in the face of the attacks carried out by the Houthis against its territory, and to continue efforts undertaken on securing and diversifying hydrocarbon supplies”, the French presidency said earlier.

The diplomatic push follows days of rioting in France, fuelled by the cost of living, especially as the US-Iran war and Iran’s blockade of the Strait of Hormuz have kept energy prices high.

Faced with criticism of his Gulf tour at home, Macron told reporters he was just “doing his job” in a bid to “ease tensions” over petrol prices, one of the causes of social unrest in France.

“There must be no sign of febrility,” he said. “I am fulfilling my role. I am at my post.”

Macron met Saudi Crown Prince Mohammed bin Salman in the Saudi capital, and the two agreed to consult on expanding security cooperation and on infrastructure projects to bypass the blockaded strait, the palace said.

It did not say how much extra diesel Saudi Arabia would supply.

Macron’s Gulf tour

The deal follows pledges secured earlier in Macron’s Gulf tour. The presidency said on Tuesday that the United Arab Emirates had committed to about 100,000 tonnes a month, with a further 100,000 tonnes monthly to be secured in Bahrain.

Together with Saudi deliveries, France now has commitments for 295,000 tonnes a month, just more than 10 percent of its consumption, it said.

Meanwhile, France is also sending military assets to Saudi Arabia, under an earlier agreement, to help protect the Red Sea port of Yanbu, which has come under attack from the Iran-backed Houthis, an armed group also known as Ansar Allah (Arabic for Supporters of God).

The United Kingdom also announced on Tuesday that it would deploy fighter jets to help shield the kingdom. Both countries say their support is purely defensive.

Analysts say the moves protect Saudi oil exports that matter to Europe’s energy markets and bolster the Gulf alliance as the US shows reluctance to offer direct military help. They also carry risks, analysts say, potentially drawing the two European states into the protracted Saudi-Houthi conflict.

New Delhi, India — United States Secretary of State Marco Rubio has arrived in India for a two-day visit, during which he is set to tour the Jamnagar refinery complex in Gujarat, owned by billionaire Mukesh Ambani’s Reliance Industries, a major player in global oil markets.

Reliance’s crude refinery in Prime Minister Narendra Modi’s home state is the world’s largest single-site refinery. In many ways, Reliance Industries’ businesses sit at the crossroads of the ongoing global energy crisis.

The conglomerate is central to Washington’s efforts to punish Russian energy buyers, while also trying to contain oil prices amid the war on Iran, on top of rising diesel costs in the US, where a crucial midterm election looms. Reliance has also only recently committed to a major investment in the US, which President Donald Trump’s administration has cited as an example of its successes in luring global capital.

Rubio is skipping the capital, New Delhi, at a time when the US-India bilateral relationship has been rocky, strained by a string of friction points — and an elusive trade deal.

So why is the top US diplomat visiting the world’s largest single-site oil refinery?

Where is Rubio visiting?

After meetings in Mumbai, India’s financial hub in the western state of Maharashtra, Rubio will fly to Jamnagar in neighbouring Gujarat, near the Gulf of Kutch. Jamnagar opens into the Arabian Sea and is home to Reliance Industries’ refining complex, a major hub for crude processing and fuel exports, which processes 1.4 million barrels per day (bpd).

Rubio had visited India earlier this year too, but this trip “is a little more business-focused”, the US ambassador to India, Sergio Gor, told reporters last week. A readout from Rubio’s office noted that he would “meet with business leaders to promote opportunities for commercial investment and economic cooperation”.

“[At Jamnagar] he will meet some of the folks at Reliance,” Gor said.

What’s in Jamnagar?

The world’s largest single-site oil-refining complex has a combined crude-processing capacity of 1.4 million bpd. That is nearly 1.5 percent of global refining capacity, according to the company.

The complex comprises two refineries: the original facility, commissioned in 1999 with a capacity of 660,000bpd, and a second, export-oriented refinery commissioned in 2008, adding 580,000bpd, which operates in a special economic zone.

Jamnagar imports crude from international suppliers and exports refined products to global markets. The refinery can process heavy, sulphur-rich crude that many facilities cannot handle efficiently, converting oil into higher-value products.

Reliance said last month that the complex has processed more than 216 crude grades, claiming to be “perhaps the only refinery to achieve this feat”.

The Jamnagar refinery’s capacity is also driving a sharp revival in imports of Venezuelan crude — taken over by the US earlier this year after abducting then-President Nicolas Maduro — as Washington seeks to reshape global oil trade.

Reliance is expected to account for roughly 350,000bpd to 370,000bpd of the October intake, according to estimates from analytics firm Kpler. “We will talk with Reliance about refining more Venezuelan crude,” Rubio told reporters in brief remarks on Tuesday.

Why is the refinery significant for global energy supplies?

Reliance is a central player in keeping global oil markets stable, as one of the world’s biggest suppliers of refined petroleum products. In September, for instance, six of the seven large cargo ships that docked at European Union ports carrying oil products were bearing Reliance goods.

Reliance’s biggest export is diesel, which Trump has been particularly worried about, with prices reaching historic highs in the US ahead of midterm elections early next month.

Though the data on exports by category is not public, an analysis by the Reuters news agency from trade sources noted that Reliance Industries exported 21.66 million tonnes of refined petroleum products in the first half of 2025 from Jamnagar. Diesel accounted for the largest share at 9.81 million tonnes, followed by petrol at 6.14 million tonnes and jet fuel at 2.06 million tonnes.

Europe accounted for the biggest share of the company’s exports, making up 28 percent of Reliance’s refined products during the period. Buyers include BP, ExxonMobil, Glencore, Vitol and Trafigura.

The Jamnagar refinery also shipped about $143m worth of oil products to the US last month, according to data cited by the Centre for Research on Energy and Clean Air (CREA), a think tank in Finland.

CREA noted in its report that the EU’s ban on importing petroleum products made from Russian crude from January 2026 does not adequately prevent products from refineries in third countries from entering Europe when those refineries also process Russian crude. The Jamnagar refinery is a prime example of that loophole.

Rubio’s visit to the refinery also comes as Trump faces his worst approval ratings amid inflation and rising fuel prices ahead of the midterm election in November. Just about 31 percent of Americans are happy with Trump’s performance – the lowest-ever number in his two terms, according to a Reuters/Ipsos survey.

The Trump administration has also reportedly been pushing Ukraine’s President Volodymyr Zelenskyy to stop strikes on Russian energy facilities, which have rattled the global fuel markets.

Why the refinery is important for the Russia-Ukraine war

Reliance is also a critical actor in US efforts to influence how much oil Russia sells.

Since the start of Russia’s full-fledged war on Ukraine in February 2022, India has emerged as the second-largest buyer of Russian oil after China. And Reliance is driving that surge in imports. While only 3 percent of its oil was sourced from Russia before 2022, that share rose to 50 percent by 2025.

So when Trump imposed an additional 25 percent tariff on Indian goods in August 2025 to punish New Delhi for the purchase of Russian oil, Reliance was directly affected. It cut back on Russian crude imports significantly in subsequent months, but it still made up a third of the oil processed by Jamnagar’s refinery during the July-September 2026 quarter.

That was under threat when the Trump administration appeared poised to impose a 100 percent tariff on Indian goods because of continued Russian oil imports, under a new law passed last month.

But Trump has since suspended those proposed tariffs, easing concerns for India and Reliance.

Rubio has said India has been diversifying its import mix away from Russian crude, even as it still buys millions of barrels of Russian oil every day. “You’ve got countries like India, for example, that have voluntarily diversified their energy portfolio, but are still getting a substantial amount of energy from Russia because it’s hard to pivot from one day to the next,” Rubio said on Sunday.

“But they’re also an important ally and partner of the United States.”

Is Reliance also investing in the US?

Yes, India’s richest man, Mukesh Ambani, the chairman and managing director of Reliance Industries, is investing in the US, primarily through energy-related projects.

It is backing America First Refining’s planned oil refinery at the Port of Brownsville in Texas, also the first major US refinery in about 50 years, announced by Trump in March.

The refinery is expected to cost $3bn to $4bn and process about 60 million barrels of US crude annually. Reliance has signed a 20-year agreement to buy a large share of the facility’s output, with operations expected to start around 2029.

In November 2024, Reliance’s US subsidiary also acquired a 21 percent stake in helium explorer Wavetech Helium for $12m as part of its low-carbon energy strategy.

Last month, Trump announced that India’s Essar Group — an oil major with knee-deep ties to Russia — is planning an $18bn integrated steel investment in the US through its subsidiary, Mesabi Metallics.

Didn’t Trump’s ally just lock horns with Ambani?

Despite Reliance’s investments in the US and Rubio’s upcoming visit to the Jamnagar facility, Elon Musk, the world’s richest man who is also a key Trump ally, recently hit out at Ambani.

His Starlink space telecommunications firm has struggled for years to secure a licence to operate in India.

In ⁠a series of X posts recently, Musk accused Prime Minister Narendra Modi’s government of stalling Starlink’s entry to ⁠favour market leader Ambani’s telecom firm, Jio. Musk taunted Ambani directly, addressing ‌him as “Prime ‌Minister Ambani” and asking whether he would “consider allowing Starlink to compete”. Starlink, Musk wrote, was being blocked by “oligarchs” protecting their “monopolistic chokehold” on Indians.

In a statement issued on X, Reliance said it has “never feared competition” and has “grown in an India that welcomes investment and innovation, homegrown or international”.

Doha, Qatar — Qatar’s deputy prime minister has warned that global energy shockwaves from the US-Israel war on Iran have yet to reach their peak, raising concerns about further disruption to supplies, international trade and economic growth.

Speaking at the Global Security Forum in Doha on Monday, Sheikh Saoud bin Abdulrahman Al Thani, who also serves as Minister of State for Defence Affairs, identified several threats facing Qatar and the wider Gulf, including risks to sovereignty and disruptions to energy supplies.

“We haven’t reached the peak with respect to energy,” he said, warning of further repercussions “in the coming days and months”.

His remarks come amid continued instability in the Strait of Hormuz – a vital waterway for global oil and liquefied natural gas (LNG) shipments – following the US-Israeli attacks on Iran on February 28, and Tehran’s retaliatory strikes across the region.

Iranian strikes on Qatar’s Ras Laffan industrial complex in March damaged facilities, with repairs expected to take several years.

“We were surprised,” Al Thani said when asked about the attack, adding that there had since been “a lot of discussion with Iran”.

He said Qatar had drawn lessons from the strikes, “to make sure that all of our assets will be protected from any unexpected attack”.

Al Thani also warned against imposing tolls on ships passing through the Strait of Hormuz.

“Transit fees should not be applied,” he said, adding that uncertainty over the waterway would ultimately affect consumers worldwide.

‘We never stop our communication’

Despite the attacks, Al Thani said Qatar continued to maintain contact with Tehran.

“We never stop our communication,” he said, adding that the two countries remained in touch at different levels despite their disagreements.

He described Qatar’s relationship with Iran before the attacks as one of trust, pointing to their shared offshore gasfield and longstanding economic interests.

Al Thani expressed hope that mediation efforts involving Qatar, Pakistan and Oman would help produce an agreement between the United States, Iran and other parties, including Israel.

He said a sustainable settlement would require broader regional dialogue involving Gulf Cooperation Council (GCC) countries, Pakistan and Turkiye, in consultation with international allies.

“We need to build this on trust,” he added.

Al Thani also suggested developing economic ties with Iran to prevent future conflicts, citing cooperation between France and Germany following decades of hostilities.

“Iran is our neighbour. We need to find ways to live with them,” he said.

US defence ties

Al Thani also highlighted Qatar’s longstanding defence partnership with Washington, saying that “more than 90 percent” of attacks had been prevented through shared expertise and military capabilities developed over the past three to four decades.

He said Qatar was continuing to develop Al Udeid airbase, which hosts US forces and military personnel from other partner countries.

The base was itself targeted by Iran during the conflict, with Qatar reporting that it had shot down two Iranian warplanes during an attack in early March.

Al Thani also announced plans for a new regional defence partnership, saying Qatar was prioritising several aspects including air defence, counter-drone measures and cybersecurity.

“I’m happy to announce today also that soon we’re going to announce a new partnership,” he said, without naming the regional partners involved.

The deputy prime minister stressed that Qatar’s mediation efforts did not diminish its commitment to defending its territory.

“Mediation doesn’t mean that we should not be ready for any defensive action from our side,” he said.

United States Secretary of State Marco Rubio is to visit India in the coming week, but he will not set foot in the capital, New Delhi.

Instead, on Monday, Rubio will hold talks with Indian External Affairs Minister Subrahmanyam Jaishankar in Mumbai, India’s financial hub, and then visit an oil refinery in Jamnagar in the western state of Gujarat, according to a statement from the US Department of State.

His itinerary sparked a political storm after the US ambassador to India said Washington expected Jaishankar to travel to meet Rubio, prompting opposition leaders to accuse the government of allowing India’s top diplomat to be “summoned” on home soil.

The spat comes as relations between the two countries are strained over trade, tariffs and India’s purchases of Russian oil.

So why is Rubio avoiding New Delhi, and why has it caused such upset? Here’s what you need to know:

What is Rubio doing in India?

He plans to discuss trade, energy and investment.

Rubio is arriving on Sunday from Samarkand, Uzbekistan, where he has been meeting with five Central Asian states at the C5+1 summit.

In India, he is due to meet senior officials to discuss the US-India strategic partnership and energy cooperation and hold talks with business leaders, the State Department said.

Indian Ministry of External Affairs spokesperson Randhir Jaiswal appeared to confirm the agenda, stating on Friday that the Mumbai talks would cover energy, trade and investment, defence, and critical and emerging technologies.

In Jamnagar, Rubio is to visit the world’s largest single-site refinery, operated by billionaire Mukesh Ambani’s Reliance Industries, and attend a reception hosted by the Ambani family, according to The Hindu newspaper.

Why isn’t Rubio going to New Delhi?

No official reason has been given.

Rubio was in the Indian capital in May for a meeting of foreign ministers of countries in the Quad, a group consisting of the US, India, Japan and Australia.

The State Department has framed his upcoming trip around energy and investment, and the second stop on Rubio’s India visit, Jamnagar, is one of the world’s most important energy hubs.

The visit also comes as fuel prices bite in the US before next month’s midterm elections.

Reliance, an energy, retail and telecommunications conglomerate, also sits at the centre of Washington’s wider oil diplomacy.

Business Standard, an Indian financial daily, said the Jamnagar stop was significant because Reliance is the biggest buyer of Venezuelan crude oil besides the US at a time when Washington has been urging India to buy more.

Since US forces seized Venezuelan President Nicolas Maduro in January and took essential control of the country’s oil industry, the US government has marketed Venezuelan oil to buyers abroad.

Reliance is also investing in a new refinery in Texas, the first to be built in the US in 50 years, which Trump hailed as a $300bn deal when he announced it in March, Business Standard reported.

What did the US ambassador say, and why has it caused upset?

Speaking at the Bloomberg New Economy Forum in New Delhi on Thursday, US Ambassador to India Sergio Gor said Rubio would meet Indian government officials in Mumbai, and Washington “expected” Jaishankar and others from New Delhi to travel there to see him.

Earlier in the week, however, Jaiswal had not confirmed the trip or explained why Rubio was skipping New Delhi, telling reporters the Indian government would announce it “at the appropriate time”, The Hindu newspaper reported.

Jairam Ramesh, a general secretary of the opposition Indian National Congress party, wrote on X that the ambassador’s statement was “quite extraordinary”.

Rahul Gandhi, leader of the opposition in parliament’s lower house, also took to X to comment, writing on Friday that Rubio had “summoned his employee to Mumbai”.

Congress MP Pawan Khera went further.

“A foreign government summoning India’s External Affairs Minister on Indian soil is a new low, even by the Modi Government’s standards,” he wrote on X, referring to Prime Minister Narendra Modi.

Why are US-India relations strained?

Mainly because of Trump’s tariffs and Russian oil.

In August last year after a round of trade talks broke down, the US hit most Indian goods with a 50 percent tariff. Under a framework the two sides agreed in February, that rate fell to 18 percent, however.

Since then, negotiations have stalled.

This month, Indian Finance Minister Nirmala Sitharaman said the talks had “plateaued”, according to The Hindu.

On Thursday, Trade Minister Piyush Goyal said the “first tranche” of a deal was in its final stages but India would not sign until its exporters had an edge over rivals such as Bangladesh, Vietnam and Indonesia, according to the Reuters news agency.

Other points of friction have emerged.

Last week, US Labor Secretary Keith Sonderling announced that his department was suspending eight companies – including the Indian IT giants Infosys, Tata Consultancy Services, Wipro and HCL – from a labour certification scheme that is a key step for employers seeking green cards for their foreign staff.

Sameer Lalwani, a senior fellow in the South Asia Program at the Carnegie Endowment for International Peace, wrote this week that Indian public opinion of the US has hit a record low, citing US engagement with Pakistan and the US-Israel war on Iran, which he said had pushed India back towards Russian oil.

Despite that, he argued, defence and technology cooperation has quietly deepened, and bilateral trade grew by almost 12 percent in 2025 to nearly $240bn.

In his view, “perceptions of the political relationship have deteriorated faster than its strategic foundations.”

A sanctions law had threatened to make matters worse.

Last month, Trump signed the Lindsey O Graham Sanctioning Russia and Iran Act, which could impose tariffs of up to 100 percent on goods from the five largest importers of Russian oil or gas.

India, one of the world’s biggest buyers of Russian oil, had warned Washington that new tariffs could hurt bilateral ties. Trump signed an executive order seeking to waive the sanctions on Friday as he tries to ease high oil prices before the November 3 US elections.

United States President Donald Trump has signed an executive order waiving newly-passed Russia sanctions, claiming the move is in the US’s “national interest”.

Earlier this month, Trump also announced a deal to bring stocks of Russian diesel into global markets, in a bid to drive down energy prices that have spiked during the US-Israel war on Iran. The US Treasury waived sanctions on Russian diesel sales until April 2027.

Trump’s embrace of Russian energy has angered Ukraine, European partners and many US officials, who say the move rewards Moscow while it continues its four-and-a-half-year war against its neighbour.

Ukraine’s President Volodmyr Zelenskyy slammed Trump’s diesel deal as “a gift” to Russia’s President Vladimir Putin that will help fund his war effort.

While European countries have also criticised Trump’s embrace of Russian energy, the US president has accused them of “hypocrisy”, as figures show that European Union countries continue to import Russian gas.

Here’s what we know:

Which sanctions has Trump waived?

In his executive order on Friday, Trump called off numerous planned Russia-related sanctions days before they were due to take effect, including duties on Russian goods and penalties for buying the country’s oil and gas.

The now-blocked measures were part of legislation passed in Congress with bipartisan support last month, named after the late US Senator Lindsay Graham, an outspoken critic of Russia.

They would have included up to 100 percent tariffs on all goods brought into the US from the five top importers of Russian crude oil or gas, including China and India. They could also have imposed equal penalties on countries deemed to have knowingly bought oil or gas from Russia 30 days after the law’s implementation, or to be among the top five countries helping Moscow circumvent sanctions on sales of its oil.

The waiver will hold until the Trump administration believes “further action is appropriate”, according to the executive order.

US Congressman Don Beyer, a Democrat from Virginia, said the sanctions waiver amounts to a “surrender to Putin” that “betrays our Ukrainian partners and defies clear congressional intent”.

Who will benefit from this?

Vasily Astrov, an economist at the Vienna Institute for International Economic Studies, told Al Jazeera that the Russian government will likely be the greatest beneficiary because the easing of sanctions means Russian oil will not have to be further discounted.

He estimated that about 60 cents of every extra dollar in the price of a barrel of Russian oil would “end up in state coffers”.

Russian official Kirill Dmitriev, an envoy for Putin, hailed the US decision to waive the sanctions as “an important and truly historic moment”.

Other beneficiaries include major importers of Russian oil and gas, such as China and India, who are now less exposed to the risk of secondary US penalties.

While Trump hopes the measures will also help bring down oil prices for US consumers before November mid-term elections, experts say that is less certain.

Addressing the US’s recent diesel deal with Russia, EU economy chief Valdis Dombrovskis said it is unlikely to have a significant impact on global prices.

According to Trump, that deal would bring 300,000 tonnes of diesel fuel into US and global markets “immediately”, followed by 500,000 tonnes in November, and 1 million tonnes afterwards.

“If we look at the volumes, they are not of any macroeconomic significance, and frankly, there are strong doubts whether Russia is even able to supply those volumes, and according also to US quality standards, those are big question marks,” Dombrovskis told the AFP news agency.

Which countries still buy oil from Russia?

China and India are the largest buyers of Russian crude oil, purchasing 6 billion euros ($6.74bn) and 3.6 billion euros ($4.04bn) worth respectively in September, according to the Centre for Research on Energy and Clean Air (CREA), a nonprofit think tank.

Hungary and Slovakia, the landlocked EU members that have exemptions to the bloc’s ban on Russian crude, also remain big customers, buying a combined 290 million euros ($326m) worth of the commodity in September, said CREA. Turkiye imported 172 million euros ($193m) worth of Russian crude oil the same month, the think tank added.

Since the end of 2022, the largest importers of Russian oil products, which include diesel, have been Turkiye, China, Saudi Arabia, Brazil and Singapore.

Saudi Arabia imported the most Russian oil products in September at 534 million euros ($600m), followed by Turkiye with 321 million euros ($361m), China with 304 million euros ($342m) and India with 161 million euros ($181m).

Is Europe buying increasing amounts of gas from Russia?

“The European Council regrets the United States’ decision to temporarily lift sanctions on Russian diesel,” European leaders said in a joint statement adopted following a two-day European Council meeting in Brussels this week.

But despite its own near-blanket ban on Russian oil, the EU has continued to import large quantities of Russian gas, though it plans to phase out those imports next year.

Urgewald, a Germany-based group that researches coal companies, reported this week that more than 12 million tonnes of Russian Arctic LNG was transported into EU ports from January to September this year, a 9.5 percent jump from the same period last year.

In September, EU countries imported 817 million euros ($918m) of pipeline gas, and 615 million euros ($691m) of liquefied natural gas (LNG), according to CREA.

EU members France and the Netherlands were the largest LNG importers, bringing in 446 million euros ($501m) and 116 million euros ($130m) respectively, according to the think tank. France’s LNG imports represented a 103 percent increase from the previous month, it added.

France’s President Emmanuel Macron has been among the most outspoken about Trump’s diesel deal with Russia, saying on Friday that it “sends a negative message” and would have no impact on global prices.

Hungary imported the most Russian pipeline gas of any EU member by far during the month, with 414 million euros ($465m) worth. Slovakia and Bulgaria brought in 161 million euros ($181m) and 132 million euros ($148m), respectively, according to CREA data.

United States President Donald Trump has insisted that Russia and Ukraine have agreed to stop striking each other’s energy infrastructure, as he called on both sides to end the “ridiculous” war.

Trump’s comments on Monday came even as Ukrainian President Volodymyr Zelenskyy said Russian forces had struck at least six Ukrainian energy facilities since the US president declared the truce on Sunday.

“Well, they agreed,” Trump told reporters, referring to Zelenskyy and Russian President Vladimir Putin. “Because I said, ‘You agree’. That’s why they agreed, because I said they agree.”

When pressed about the Russian strikes, Trump said, “Well, I’d have to look at it and see, because there’s been violations on both sides.”

The US president called the war, which began with Russia’s full-scale invasion of Ukraine in February 2022, a “disaster” and claimed, without offering evidence, that at least 32,000 people had been killed this month alone.

“All I know is that Zelenskyy and Putin have to get together and end that ridiculous war,” he said.

Kyiv blindsided

Trump had blindsided Kyiv and its European allies when he announced the purported energy ceasefire on Sunday. The announcement came two days after he temporarily eased US sanctions on Russian diesel, a move that drew outrage in Europe and Ukraine.

Zelenskyy said it reversed years of Western efforts to isolate Russia’s economy and would only embolden Putin.

Lawmakers from both major parties in the United States have also said the diesel decision appears to violate US law. Several Republicans have objected that it undercuts a law Trump himself signed to tighten restrictions on Moscow.

Zelenskyy said on Monday that Ukraine supported an energy ceasefire and had carried out no attacks on Russian refineries overnight. He said Kyiv was prepared to sign “guarantees to make sure they can be trusted”.

But he said it was “increasingly evident” that Moscow would not comply.

“Today alone, the Russians have attacked 6 energy facilities in Ukraine. 33 people were wounded across the country,” Zelenskyy wrote on social media. “This is what happens when Russia sees the prospect of higher revenues for its war machine.”

Russia, however, has rejected any pause in fighting, with Foreign Minister Sergey Lavrov promising to press ahead with the military campaign.

“I do not think he deserves a respite,” he said of Zelenskyy. “I don’t think we’ll be buying into assurances and promises again.” Russia, he added, would continue to pursue the goals of what it calls its “special military operation” in Ukraine.

US midterms

Trump, meanwhile, has portrayed Ukraine, rather than Russia, as the main obstacle to peace. He has said that Putin is more eager on a deal than Zelenskyy, and has called on Ukrainians to vote their president out of office – an unusually harsh turn in a relationship that has been strained since Trump returned to the White House in 2025.

Al Jazeera’s Alan Fisher, reporting from Washington, DC, said Trump has previously announced agreements between Russia and Ukraine that never materialised.

“He says he wants to protect industries in the US like farmers and ranchers, and to do that he needs the price to go down. But it seems that he thinks there’s a deal, but no one else is sure that there actually is one,” Fisher said.

The latest announcement, according to our correspondent, appeared to be driven by Trump’s desire to bring down diesel prices before the US midterm elections on November 3.

Most polls predict that Republicans will lose control of Congress as voters grow frustrated with rising prices, particularly for petrol.

An opinion survey published on October 1 by the Associated Press news agency and the University of Chicago suggested that 65 percent of US adults blame the White House for the high cost of living, especially Trump’s tariff policies and his new war against Iran.

Ukraine’s European allies, meanwhile, voiced scepticism about the energy ceasefire and approved the largest set of European Union sanctions since Russia’s 2022 invasion.

The bloc’s foreign ministers added some 1,569 people and businesses to the bloc’s sanctions list to maintain the pressure on Moscow.

“Russia will only negotiate seriously under pressure, which is why we are sticking to our sanctions against Russia,” German Chancellor Friedrich Merz said in Berlin.

The Cuban government is pushing ahead with its plans to transition to renewable energy, amid a de facto oil blockade from the United States that has strangled the island’s economy.

In an interview with the Reuters news agency on Monday, Cuban Minister of Energy and Mines Vicente de la O Levy explained that the blockade has forced Cuba to explore domestic alternatives to foreign fuel imports.

“We are seeking our own alternative solutions, using our own resources, our sun, wind, tides, fuel, Cuban crude oil and the gas produced in our wells,” de la O Levy said.

He said 144 solar farms with a combined capacity of about 1,418 megawatts have been installed on the island in recent years.

China has been the largest supplier of solar panels to the island, and shipments have increased since the blockade began in early January.

At the time, US President Donald Trump halted all oil shipments from Venezuela, a close ally of the Cuban government.

Later that month, Trump also announced he would impose heavy tariffs on any country that exported oil to Cuba, justifying the threat by calling the island’s government a “national security” threat.

Since then, only a single oil tanker from Russia has reached Havana. The US has increased its shipments of oil to Cuba’s private sector, but it has largely barred fuel exports for nationalised industries on the communist-led island.

The government-run electrical grid, widely considered to be antiquated, relies heavily on fossil fuels. Only 40 percent of Cuba’s electricity comes from ‌‌‌‌domestic ‌‌‌‌oil production, according to the International Energy Agency.

As of 2023, only nine percent of the country’s energy consumption was covered by renewable sources.

De la O Levy admitted in his interview with Reuters that the country was facing difficulties. The blockade has caused shortages of medicine, water and fuel, pushing Cuba to the brink of a humanitarian crisis.

“We are surviving and moving forward, little by little, even if not at the pace we would like,” he said.

“We face long hours of blackouts and lack fuel for cooking and transportation. We lack fuel, but we are gradually making headway through our own solutions and our people.”

Cuba’s production of domestic crude oil remains stable, he added, but is almost entirely allocated to power plants.

The United Nations and human rights watchdogs have criticised the oil blockade as a violation of international law.

Cuban Foreign Minister Bruno Rodriguez Parrilla also condemned the oil blockade in his speech at the UN General Assembly last month.

“It is an unusual and unprecedented action,” Rodriguez said of the blockade.

“A superpower unilaterally deprives all states of their right to export the commodities that they wish to the country that they wish.”

The US has maintained an economic embargo on Cuba for more than 60 years, since the Cold War era.

But since taking office for a second term as president, Trump has sought to squeeze Cuba’s economy further, as part of a “maximum pressure” campaign. His administration has indicated that it wants to topple Cuba’s government.

On October 7, US authorities announced they had seized 90 biodiesel fuel shipments valued at over $2.8m destined for Cuba.

“These shipments were part of an attempt to unlawfully export fuel to Cuba in violation of federal export laws,” US Immigration and Customs Enforcement (ICE) said in a statement.

But in his interview with Reuters, de la O Levy denied the Cuban government had any link to the shipments.

“No Cuban state-owned company has managed to secure a fuel contract, whether for small or large quantities,” he said.

He added that any US oil shipments to private firms fall far short of the country’s requirements.

“I would venture to say that the amount entering the country doesn’t even cover 3 percent of its fuel needs,” de la O Levy said.

Sunday’s strike on King Khalid International airport kills a Pakistani national.

A projectile has struck Saudi Arabia’s King Khalid International airport, killing one person and injuring 11, according to the country’s civil aviation authority.

The General Authority of Civil Aviation (GACA) identified the deceased in Sunday’s attack as a Pakistani resident and said the injured were transferred to several hospitals for medical care.

The strike on terminals 3 and 4, which serve domestic flights, occurred a day after a Houthi missile hit the airport, killing 12 people and wounding more than 300, according to the Saudi-led coalition fighting Iran-backed Houthi rebels in Yemen.

India’s embassy in Saudi Arabia said one of its citizens died on Sunday of injuries sustained in Saturday’s attack, which would bring the toll to 13.

Following Sunday’s attack, GACA said damage assessments and safety inspections of the airport were under way.

A witness on board a taxiing aircraft at the airport told the Reuters news agency that a projectile struck the tarmac next to several parked planes at about 8:30pm (17:30 GMT) on Sunday, causing a fire.

The witness said the aircraft returned to the gate, where the passengers disembarked and were told to leave.

The Riyadh airport has been struck four times in the past five days. Houthi attacks on King Khalid airport on Thursday killed at least three Saudi citizens, including a pilot, according to GACA.

The airport has been closed since Saturday’s attack, which was the deadliest in the country since the US-Israel war on Iran began in late February.

The Houthis claimed responsibility for the strikes before Sunday’s.

The airport attacks have escalated the war in Yemen and threaten to draw in the US military. US President Donald Trump says he is weighing whether to join the fight against the Houthis.

The escalation puts further pressure on global oil supplies and prices, as well as on commercial shipping through the Bab al-Mandeb strait off the Yemeni coast, a crucial alternative waterway to the Strait of Hormuz.

Trump had said he intends to speak with Saudi Crown Prince Mohammed bin Salman, who is seeking help against the Houthis, but there were no signs on Sunday that the US president had followed up on his claim.

There are fears that US intervention could prompt the Houthis to halt shipping through Bab al-Mandeb, further restricting the flow of oil out of the Gulf.

The rebels seized key areas along the strait last month. The Saudi-led coalition, backing forces loyal to Yemen’s internationally recognised government, has been trying to seize them back.

Ukraine says it has received proposals from India, Turkiye, Egypt and the United States to broker talks with Russia. The offers come as the two adversaries escalate attacks on each other’s energy and port infrastructure with their war now in its fifth year.

Ukrainian Foreign Minister Andrii Sybiha revealed the four proposals at a briefing in Kyiv on Friday and singled out New Delhi’s. “The most comprehensive is India’s proposal,” he said, adding that India had signalled a willingness to play a role for the first time.

None of the proposals aims to end the war. Each seeks a narrower truce, covering energy facilities, ports or commercial shipping in the Black Sea.

Here’s what we know:

What is India proposing?

India has not made its plan public. Quoting unnamed sources, however, Indian media have reported it has three parts. According to the Hindustan Times, it would aim to protect infrastructure, keep grain and energy supplies moving through Black Sea ports, and ensure the safety of commercial shipping.

The first part – mutually halting strikes on energy facilities and ports – matches what Kyiv has been demanding. Sybiha said any deal must be a complete energy truce that covers port infrastructure as well.

The second part builds on the Black Sea Grain Initiative, which Turkiye and the United Nations mediated in 2022 but Russia abandoned in 2023.

The third part, protecting merchant ships and their crews, is particularly important to India because Indian sailors have been killed or harmed on Black Sea routes.

The sources were quoted as saying India’s plan goes further than the other three proposals because it covers infrastructure and shipping together. A Ukrainian official told the Kyiv Independent that it incorporates elements of the Turkish, Egyptian and US initiatives. The Kyiv Post reported that Sybiha also described the plan as addressing a possible ceasefire along the front lines, although other accounts said he gave no specifics.

The proposal likely took shape during Indian External Affairs Minister Subrahmanyam Jaishankar’s first visit to Ukraine last month and in a later meeting with Sybiha at the UN General Assembly in New York, also in September. Jaishankar said New Delhi was “trying to be helpful, starting with the Black Sea safety of shipping issue”.

What do we know about the Turkish and Egyptian proposals?

Very little. Neither Ankara nor Cairo has published details. Both reportedly focus on keeping Black Sea grain supplies moving by suspending attacks on commercial shipping. Some reports said the two countries proposed a grain truce jointly while others described two separate plans.

Turkiye has done this before. With the UN, it steered the 2022 grain deal, one of the few narrow truces of the war to hold for any length of time. Ankara and the UN are now organising new Black Sea talks with a round planned for October.

Beyond its Black Sea focus, almost nothing is known about Egypt’s proposal. Its interest, however, is clear: Egypt relies on Ukraine for nearly one-third of its grain supplies.

What is the US pitching?

According to Ukrainian President Volodymyr Zelenskyy, Washington has proposed three steps: a mutual halt to energy strikes, a reopening of the grain corridor and a trilateral meeting with Ukraine and Russia, possibly in Abu Dhabi.

The latest effort began in early September when US President Donald Trump’s envoys visited Kyiv and Moscow and secured an agreement in principle for a trilateral meeting. Steve Witkoff and Jared Kushner met Russian President Vladimir Putin in Moscow on September 5 while Kremlin envoy Kirill Dmitriev visited the US twice in September.

The trilateral meeting has since been pushed back. It had been expected to take place in the United Arab Emirates in early October. Washington now wants it in late October, and people close to the talks blamed the delay on Russia.

Washington has also invited Putin to the Group of 20 summit in Miami, Florida, in December. “We hope that’s an invitation he’ll accept,” US Secretary of State Marco Rubio said. The Kremlin said no decision has been made.

At the same time, the US is applying pressure to try to end the war. Trump recently signed a law giving him sweeping powers to sanction buyers of Russian energy.

He has also called on Ukraine to stop targeting Russian diesel facilities amid a diesel prices crisis in the US, where Trump faces tricky midterm elections next month. “Mr Zelenskyy has to do one thing,” he said on September 13. “He has to stop knocking out diesel fuel in Russia.” This drew much criticism that Trump instead should focus his comments on Russia, which began the war with its invasion of Ukraine in February 2022.

He is reportedly sceptical about his own government’s latest diplomatic initiative. People familiar with his thinking have told US media that he doubted Putin would agree to an energy truce before winter.

How have Russia and Ukraine responded?

Sybiha said Ukraine would agree to a truce but with conditions. It would accept an energy and Black Sea shipping ceasefire, but only as a combined package, he said.

He added that Kyiv is also open to an unconditional ceasefire along the current front lines. Zelenskyy backs the US-proposed meeting but stressed it needs “not only Ukraine but also the Russian side” to support it.

Moscow has been warm in tone but has committed to nothing. Kremlin spokesperson Dmitry Peskov said Russia would welcome India’s peace efforts while Putin said Modi has “very good ideas aimed at finding mutually acceptable solutions”, but he did not elaborate.

In private, Moscow appears to have said no. A Ukrainian official told the Kyiv Independent that Russia has rejected India’s proposal although this has not been confirmed publicly. Ukraine’s agriculture minister said Russia had rejected every Black Sea ceasefire option the mediators have presented.

Why are Global South countries becoming more involved?

Food supplies, the lives of their citizens and fuel prices are all at stake.

“I think it’s clear to many countries that this war is not a localised war, but it’s a war that has these global consequences,” Fredrik Wesslau, a senior policy fellow at the European Council on Foreign Relations, told Al Jazeera.

Russia and Ukraine account for more than a quarter of global wheat shipments, and their attacks on each other’s ports helped push wheat futures to a three-year high in August.

Sailors from countries with no links to the war are being killed. At least five Indian seafarers have died in strikes on Black Sea shipping in recent months along with seven Azerbaijani crew members since June. On Saturday, a Russian strike on a Liberian-flagged ship in a port in the Odesa region killed a crew member. Ukraine, for its part, has targeted tankers it links to Russia’s shadow fleet since July.

The energy war is also being felt in global markets. Ukraine reported more than 194 drone attacks on Russian refineries this year, hitting all 11 of the largest. Bloomberg News estimated that Russia’s fuel output has fallen by more than 30 percent. With Middle East supply already down as a result of the US-Israel war on Iran, global diesel markets are more exposed to the loss of Russian supplies.

Maximilian Hess, a nonresident senior fellow in the Eurasia Program at the Foreign Policy Research Institute, said energy is at least as important as grain in driving the diplomatic efforts. He pointed to a “clear frustration” among many countries over high oil prices, which reflect both the Russia-Ukraine war and the crisis in the Middle East.

“Of course, Ukrainian grain is important for them, but the oil-price factor is important there as well,” he told Al Jazeera. “I think it is those commodity-shock concerns that are pushing them to re-embrace this rhetoric, rather than anything else.”

What are the challenges ahead?

Every previous attempt at diplomacy has failed to end the Russia-Ukraine war. A US-brokered, 30-day energy truce in early 2025 collapsed amid accusations of violations on both sides. At talks in Istanbul in May 2025, Zelenskyy complained that Russia had sent a junior delegation with no authority to sign a ceasefire.

In August 2025, a meeting between Trump and Putin in Alaska yielded no results despite Trump claiming to be close to a deal ahead of it.

Wesslau said Washington’s efforts have faltered partly because Trump – who had boasted he would end the war within 24 hours of taking office in January 2025 – has appeared unwilling to put real pressure on Moscow. “The Russians see this, and they conclude that they can continue this war,” he said.

Deep distrust remains. Oleksandr Merezhko, head of the Ukrainian parliament’s foreign affairs committee, said: “Putin never keeps agreements.”

Moscow’s actions on the ground suggest it is in no hurry, Wesslau said  “They’re trying to strangle Ukraine, strangle the economy, and make it unliveable ahead of the winter,” he said. He added that Moscow’s occasionally softer rhetoric was aimed mainly at the Trump administration and “has always proved to be a bluff”.

Russia’s terms are another obstacle. Hess said Moscow’s demands have not softened at any point since it launched the war and at times have grown. Putin has demanded all of Ukraine’s Donetsk, Luhansk, Kherson and Zaporizhia regions, including territory Russian forces have never controlled, as well as a buffer zone in northern Ukraine. Moscow is also seeking sanctions relief and military concessions for any Black Sea deal.

“I don’t think it’s a question of who actually mediates. I think it’s really a question of the calculation in Moscow,” Wesslau said. “Fundamentally, the problem is that Putin doesn’t want a ceasefire or a peace agreement. He wants to continue the war. He believes that he can win.”

Analysts said only greater economic pressure is likely to change that calculation.

Wesslau said if Europe can close down Russia’s shadow fleet of oil tankers, “this would be a massive blow to Russia’s war economy.” Hess said the country best placed to shift things quickly is China, rather than the US, by cutting its purchases of Russian oil. However, he added: “I don’t think Beijing is interested in doing so.”

Hess said that unless there is an outside shock, the war “is much more likely to last another four years than another four months”.

Islamabad, Pakistan – More than 9.5 million people have received subsidised petrol under a special fuel relief scheme launched by Pakistan’s prime minister, Federal Minister Shaza Fatima Khawaja told Al Jazeera on Wednesday.

The initiative, aimed at lower-income citizens, comes as the government attempts to help households deal with fuel price increases tied to the war on Iran.

The scheme, launched in September, offers 100 rupees ($0.36) off every litre of petrol to owners of motorcycles, rickshaws and small cars, through a text-message system.

Petrol prices have risen by nearly 50 percent since the war began on February 28, adding to Pakistan’s economic hardship and putting further pressure on consumers already grappling with rising inflation.

How the scheme works

Explaining the process, Khawaja, the minister for information technology and telecommunications, said applicants text their national ID number, vehicle registration, and province to 9771. A second message, sent before each visit to a pump, generates a token redeemable anywhere in the country.

Two- and three-wheelers get 500 rupees ($1.80) a week, capped at four tokens a month. Cars with engines of up to 800cc get 1,000 rupees ($3.60) every 10 days, for three tokens monthly.

After complaints, registration, once a paid service, was made free, and a five-litre minimum purchase was scrapped for the same reason.

Khawaja told Al Jazeera the system had been redesigned based on experiences of users on the ground.

Riders no longer need the vehicle to be registered in their own name, as long as they can supply the exact registration date shown on the documents.

“Even in my own house, there’s a bike registered in our name that our cook uses for daily errands,” Khawaja said, explaining why the ownership requirement for two- and three-wheelers was dropped on September 20.

An earlier cash-transfer scheme in April had reached just over a million bike owners, she said, largely because disbursement required a bank account most riders did not have.

‘The relief is decent’

Government officials say that the scheme has been expanded to include wider sections of society, especially those who depend on their vehicles to generate income.

“There’s a benefit; it’s not like there’s nothing,” Shakeel Ahmed, 45, an electrician in Islamabad, told Al Jazeera. “The relief is decent for people who use it normally, for local trips. But for people like us, who put in 1,000 to 1,500 rupees [$3.60-$5.40] of petrol a day, it’s not enough.”

Safiya Aftab, an economist, told Al Jazeera the scheme has reached the people it was meant to.

“The scheme has indeed reached low-income segments of society, people who typically use two-wheelers and 800cc cars. So yes, it’s a good thing that they are subsidising the poor,” she said.

Aftab, however, also pointed to a levy – 114 rupees ($0.41) for every litre – that the government charges. This, she said, was helping the government raise revenue. She said the government is now earning more than 100 billion rupees ($361m) a month from the levy, which is fuelling inflation.

“The levy was originally meant as a sort of environmental tax, to discourage the use of petrol. Now it has become a full revenue earner for the government, one that helps keep the fiscal deficit down,” the economist said.

What it costs and for how long

The Pakistani government has approved 75 billion rupees ($271m) for the scheme’s first three months, through November.

Petroleum Minister Ali Pervaiz Malik put the running cost at 25-30 billion rupees ($90m-$108m) a month at launch. By late September, he said, it had risen to 35-40 billion rupees ($126m-$144m).

Malik has said the government is prepared to run the scheme for up to 10 months, or “until the end of the war”, if needed.

Pakistan is currently under a $7bn International Monetary Fund programme, and an IMF team is in Islamabad this week for talks with the government as it seeks to keep its fiscal commitments on track while responding to the fuel shock.

Officials familiar with the government’s talks with the IMF say the Fund wants relief capped at three months and routed instead through the Benazir Income Support Programme, the country’s main cash-transfer scheme.

Khawaja said the IMF’s position from the outset was that relief had to be targeted, not universal, which was why the scheme was built around actual token use rather than a blanket price cut.

Who it leaves out

But there are claims that the relief is not reaching all. Cars with engines larger than 800cc, diesel vehicles and public transport are excluded entirely, leading some experts to suggest that the subsidy scheme risks missing the most vulnerable sections of Pakistani society.

“A poor household that uses public transport, walks to work, or relies on diesel-powered transport may receive nothing while still facing higher food and transport costs,” Khaqan Najeeb, a former adviser in Pakistan’s Ministry of Finance, told Al Jazeera.

More than 8.1 million tokens had gone to two- and three-wheelers by late September, compared with fewer than 380,000 for cars, Malik said. A November 2024 Gallup Pakistan survey found that 79 percent of respondents, in rural and urban areas alike, said they use public transport such as buses or wagons.

Does the relief go far enough?

At 100 rupees a litre, the maximum monthly saving is 2,000 rupees ($7.20) for a motorcycle user and 3,000 rupees ($10.80) for an eligible car owner, Najeeb said, calling it “useful household relief, but not enough to offset the broader cost-of-living shock”.

Petrol has climbed from 266 rupees ($0.96) a litre before the war to nearly 395 rupees ($1.42), despite a partial rollback in April. Inflation rose to 10.3 percent in September from 7 percent in February, Najeeb said.

Sajid Amin Javed, a senior economist at the Sustainable Development Policy Institute in Islamabad, said the relief was “minimal”, but added that this was understandable given the IMF constraints on Pakistan.

“The relief is minimal, and that is understandable as we are in an IMF programme,” Javed told Al Jazeera, arguing that cutting the petroleum development levy, which still adds 114 rupees to every litre, would deliver broader relief than a capped subsidy.

“The government is using the petroleum development levy to fill its revenue gap, but that comes at a significant cost in terms of inflation, growth and household welfare,” Javed said.

Najeeb, however, argued the scheme should not become a permanent fixture of Pakistan’s energy policy – and should be used only to make oil price shocks “less damaging”.

Countries in Central Asia have begun buying oil from Iran as the Russian fuel supplies they have long depended on run dry amid Ukraine’s mounting attacks on Russian energy infrastructure to degrade Moscow’s war effort.

In August, Tajikistan announced it was receiving oil and petroleum products from Iran as Dushanbe faces uncertainty over its fuel supply from Russia. Tehran also agreed to establish a joint refinery in Kyrgyzstan in August, and supply the country with crude oil.

Moscow has been facing fuel shortages due to Ukrainian drone strikes on its refineries as Russia’s war on its neighbour continues to rage.

Can the Russian fuel crisis give Iran a new oil opening in Central Asia?

Here’s what we know:

Which Central Asian countries have been affected by Russia’s fuel crisis?

Ukraine’s offensive against Russian energy infrastructure has caused panic across Central Asian countries like Tajikistan and Kyrgyzstan, which are dependent on Moscow for oil and petroleum products.

Tajikistan has traditionally sourced up to 80 percent of its petroleum products from Russia. Kyrgyzstan also relies on petroleum product imports, sourcing more than 90 percent of its petrol from Russia.

“They’ve been hurt the most,” Galiya Ibragimova, a Moldova-based expert on Central Asia with Carnegie Politika, which has its headquarters in Berlin, told Al Jazeera in an interview in August.

Kyrgyzstan is a member of the Eurasian Economic Union, the free trade bloc of five former Soviet nations dominated by Russia and the Kremlin’s political decisions.

Tajikistan is not a member of the group, but it bought discounted Russian fuel as “payment for political loyalty, not because [Russian President Vladimir] Putin is so kind”, Ibragimova added.

Kazakhstan, meanwhile, boasts three giant, Soviet-era oil refineries. Still, fuel prices in the country have increased by 15.6 percent this year, the UlusMedia website reported on July 10.

Uzbekistan, on the other hand, is less dependent on Russian energy, with domestic production capable of reaching 100,000 tonnes of petroleum products per month, satisfying most of the country’s needs. But due to the increase in oil demand from its regional neighbours, Uzbekistan has also been forced to diversify its imports and has begun striking deals with countries like Georgia and Iraq.

Why is there a fuel crisis in Russia?

Russia has been facing a severe fuel deficit as Kyiv’s drone strikes – launched in an effort to degrade Moscow’s ability to maintain its ongoing invasion of Ukraine – have knocked out an estimated quarter to half of its total oil refining capacity.

To tackle the problem, Russia has imposed fuel rationing. Sales are often limited to about 20-30 litres (about 5-8 US gallons) per vehicle, and drivers must pump fuel strictly into vehicle tanks. Filling jerry cans is largely prohibited.

Earlier, the government banned petrol and jet fuel exports. Officials are now weighing a ban on diesel exports, too. Authorities have loosened fuel-quality regulations, temporarily allowing lower-grade fuel for the domestic market.

A state of emergency has also been declared in Russian-occupied Crimea, which Moscow annexed from Ukraine in 2014. A Russian-owned oil firm in India, Nayara Energy, has reportedly sold petroleum to Russia.

While Russian President Putin acknowledges the crisis, he appears reluctant to end the war on Ukraine and insists the situation is under control.

“These attacks on our facilities certainly create problems – that is obvious. We are currently seeing a certain shortage, though I would say it is not critical,” he said earlier this year.

“First and foremost, we have to rapidly and significantly increase production of air defence systems that are most in demand. We must also continue to improve them… Repairs at refineries must be completed more quickly.”

So, how is Iran helping Central Asia?

Amid Russian fuel shortages, Central Asian countries like Tajikistan have begun striking deals with Iran.

In August, Tajikistan’s Energy and Water Resources Ministry told the Asia-Plus news agency that the country is receiving oil and petroleum products from Iran. The ministry has not disclosed the route used to transport the products, but Tajikistan expects to receive 2.55 million tonnes of oil and petroleum products from Iran.

Besides Tajikistan, Iranian President Masoud Pezeshkian welcomed a proposal from Kyrgyzstan in August to establish a joint refinery in the Central Asian country, according to a report by Iran’s Tasnim news agency,

Under the agreement, Pezeshkian said, “The crude oil needed by the refinery can be supplied by Iran, and the products can be divided between the two sides.”

Will exporting oil to Central Asian countries help Iran?

The United States and Israel’s war on Iran has affected Tehran’s oil revenues. Data released by the government-administered Statistical Center of Iran in September showed that gross domestic product (GDP) shrank by 10.1 percent year-on-year between March 21 and June 20, the first quarter of the Persian calendar.

Tehran’s ability to sell crude has also been dramatically curtailed by the US naval blockade of Iran’s ports, imposed for most of the war, which began in late February.

Iranian crude and condensate loadings collapsed from about two million barrels per day (bpd) in March to roughly 740,000bpd in July and just 220,000-255,000bpd in August, according to estimates from Kpler and Vortexa.

TankerTrackers.com told the Reuters news agency in September that 29 tankers, carrying 36.11 million barrels of crude, were trapped in the Strait of Hormuz. Meanwhile, Vortexa estimated that total Iranian crude afloat had fallen from 135 million barrels at the end of July to 107 million barrels by late August.

Amid these challenges, Iran has been scrambling to find new countries to trade oil with. Russian fuel shortages have opened up new opportunities for Iran in Central Asia, at least in the short term, according to analysts.

How does Iranian oil reach Tajikistan and Kyrgyzstan?

Iran does not share a border with either country.

To get to Tajikistan, Iranian “oil and refined products have to cross Turkmenistan and Uzbekistan by rail”, said Frederic Schneider, a nonresident senior fellow at the Middle East Council on Global Affairs.

To get to Kyrgyzstan, Iranian oil would also need to pass through Turkmenistan and Uzbekistan.

Is trading oil with Iran logistically sustainable for Central Asia?

It is unlikely, Schneider said.

“This opportunity [for Iran] depends on Ukraine continuing to hit Russian refineries, which seems unlikely, both given the waning of Ukraine’s strike capability and the US government’s demand to stop the attacks as they put too much strain on global oil markets,” he told Al Jazeera.

He noted that US President Donald Trump has pressed his Ukrainian counterpart, Volodymyr Zelenskyy, repeatedly in September for an “energy truce” with Russia, since diesel prices have become a political problem for Trump ahead of the November midterm elections in the US.

“Those truces have so far collapsed within hours, but the direction is clear. Once the strikes stop, or once Russia repairs its plants, Russian fuel will come back to Central Asia duty-free under Eurasian Economic Union arrangements, and Iran will struggle to compete on price,” he said.

Logistics also favour Russia with respect to importing oil to countries like Tajikistan and Kyrgyzstan, he said.

Unlike Iran, Russia shares a border with both.

“Tajikistan’s own request [for oil] would need around 51,000 rail tank cars, and its main refinery at Dangara has never operated commercially at scale. Russia, by contrast, has decades’ worth of logistics infrastructure, pipelines, rail links, and supply contracts into the region,” Schneider said.

Is Central Asia a big enough market to compensate for Iran’s Hormuz losses?

No, according to Schneider.

Tajikistan’s total demand, Schneider said, was about 50,000bpd.

That is a drop in the ocean compared with the 1.7 million bpd Iran exported by sea a year ago. China reported $9.96bn in two-way trade with Iran in 2025, a figure that does not include some $31.2bn in Iranian oil shipments, according to the US-China Economic and Security Review Commission.

“This suggests that Central Asia can be a useful outlet for Iranian diesel and gasoline, but it cannot replace the Chinese market,” Schneider said.

For Tehran, Central Asia’s importance depends on how the US-Israel war on Iran develops, he said, adding that Tehran also needs to stay on good terms with Russia, with which it has a deep strategic partnership.

“Iran cannot afford to be seen as poaching Russian customers too aggressively, so it will present itself as a stopgap supplier, which, again, limits how much it can earn there,” he said.

What other risks does Central Asia face in buying Iranian oil?

Schneider warned that Central Asian nations could be hit with Washington’s secondary sanctions on Iran.

“Legally, US secondary sanctions apply to any foreign company or bank that conducts a significant transaction in Iranian petroleum, wherever it is based, and the Treasury expanded the list of sanctionable conduct in August. A Treasury official has already warned publicly that anyone in this trade ‘incurs that risk themselves’,” he noted.

But Schneider said that, politically, the US sanctioning Central Asian governments is unlikely.

“Central Asia is the arena of a new ‘Great Game’ between Russia, China and the United States, and Washington is courting the region harder than at any point since the 1990s, chiefly for its critical minerals. Kazakhstan alone holds about half of the minerals the US classifies as critical, including uranium and tungsten,” he said.

“Sanctioning a Central Asian government for buying fuel from Iran would push them straight back into closer ties to Russia and China,” he noted.

“What I would expect instead are targeted designations of individual traders, rail and logistics operators and smaller banks, combined with quiet pressure on the region’s correspondent banks. That alone is enough to raise the cost and slow the trade, but will come at the price of these countries redoubling their efforts to decouple economically and financially from the US.”

The hum of the kidney dialysis machine that Onasis Munoz is connected to suddenly stops. The fluorescent lights overhead flicker out, and his room at a clinic in Valencia, Venezuela, is plunged into darkness.

It is not the first time a power cut has interrupted one of the three weekly sessions Munoz needs to do the work his failing kidneys can no longer do, filtering waste and excess fluid from his blood.

For years, electricity would go out every couple of days across parts of Venezuela’s Carabobo state.

But in recent months, Munoz said, the outages have grown to be daily, lasting around seven hours. The clinic’s emergency batteries have since been depleted, and its backup generator no longer works.

He explained that the frequent power failures have disrupted his treatment. His health has slumped as a result.

“I arrive home, exhausted, as if I had run a marathon,” the 34-year-old said.

But often there is no electricity there either, and recent weeks have been sweltering. “I can’t switch on the air conditioning. I cannot rest because of the heat and the mosquitoes. There’s no relief,” Munoz said.

Across Venezuela, the prolonged outages are riling locals, as the electricity supply to homes, businesses and essential services becomes unstable.

Some of the cuts are deliberate, as the government of interim President Delcy Rodriguez rations electricity.

The resulting frustration has spilled onto the streets, where demonstrators hold “cacerolazos” – a traditional form of protest that involves banging pots and pans.

Some have gone as far as blocking roadways and setting tyres on fire. The electricity crisis has also raised concerns about how the government is managing the country’s vast oil supply, a key source of income for the country.

“We are desperate. We cannot understand how a country so rich in resources can be practically left in the dark,” said Patricia Cueva, a lawyer from Maracaibo, the capital of oil-rich Zulia state.

“We cannot rest. We cannot work. Our children cry.”

The Group of Seven countries has agreed to release 100 billion barrels of crude oil and diesel from emergency reserves over several months in an effort to reduce soaring energy prices after pressure from US President Donald Trump.

The US and Israel’s war on Iran, as well as Russia’s war on Ukraine, have triggered a spike in global oil and diesel prices.

Oil prices ‌jumped on Thursday and settled up more than $4 a barrel. Global diesel prices also hit a record high last Friday with the average price for a gallon (3.79 litres) of diesel at $6.50, up from $5.61 a month earlier, according to the American Automobile Association (AAA).

In a statement on Thursday, G7, which includes the US, UK, Canada, Japan, Germany, Italy and France, with the EU also represented, said there will also be a “substantial diesel release within the first 20 days” and discussions over “additional diesel releases as necessary” will be held in the coming days.

Will the G7’s energy release stabilise the global energy market?

Here’s what we know:

What has the G7 announced?

After a video conference of G7 leaders chaired by French President Emmanuel Macron on Friday, the group said in a joint statement: “Taking into account commitments that have already been fulfilled, we will implement our commitments with a coordinated release through the IEA of 100 million barrels.”

Earlier this week, the International Energy Agency’s (IEA) Executive Director Fatih Birol said that members had released about two-thirds of the 400-million-barrel agreement.

The G7 energy release will begin immediately and last for four months and will include a substantial diesel release for 20 days. It is not clear how many oil and diesel stocks each member of the group will release.

“We will convene in the context of the IEA in the coming days to discuss the possibility of additional diesel releases as necessary,” the statement said.

“We will coordinate maintenance schedules across G7 refineries to prevent simultaneous capacity shutdowns and temporarily increase utilization rates where feasible,” it added.

The G7 also urged member countries to refrain from imposing export restrictions on energy products among themselves.

Earlier this week, the Trump administration had threatened to impose a ban on US diesel exports and also pressured Europe to release its emergency diesel stocks to help ease soaring diesel prices.

Why are oil and diesel prices so high?

Global energy prices have been soaring due to the US and Israel’s war on Iran, which has disrupted energy exports from the Gulf. Meanwhile, the Ukraine attacks on Russian energy installations have also disrupted global energy supplies.

Former head of the International Energy Agency’s Oil Industry and Markets Division Neil Atkinson told Al Jazeera that there are three key factors contributing to the decline in global diesel supply.

First, “there isn’t diesel coming out of the Middle East to Europe, and Europe took quite a lot of diesel from Saudi Arabia and from Kuwait.”

Second, “Russia has now ceased to export diesel at all” due to “the attacks by Ukraine on Russian refineries”.

“And China is no longer exporting diesel,” he added.

“We’re in a situation where demand remains relatively high and is likely to stay high because of the agricultural harvesting season.”

According to data from the Joint Organizations Data Initiative (JODI) and the Organization of Petroleum Exporting Countries (OPEC), the United States is the world’s largest producer and exporter of diesel. It produces around 240.5 million tons and exports around 1.26 million barrels of diesel per day.

Russia is the world’s second-largest exporter of diesel, supplying 783.4 thousand barrels per day to the global market. Saudi Arabia is the world’s second-largest producer of diesel at 58.4 million tons, but it consumes large portion of its diesel domestically.

Will the G7 energy release bring prices down?

After the G7 announcement, French President Macron, who had co-chaired the meeting, said the group’s move to release the oil will “bring down the prices of petroleum products, particularly diesel.”

The price of Brent crude oil, the international benchmark, briefly dropped below $100 a barrel after the G7 announcement, but rose to around $102 in the evening.

Naeem Aslam, Chief investment Officer at Zaye Capital Markets, told Al Jazeera that the G7 energy release was “very much needed”, but the group’s announcement was just to ease off the pressure on the energy market.

“The actual structure changes about who is going to release [the energy stocks] and what and where the bans will be lifted, remains an important component in terms of the market,” he said.

Aslam added that by Sunday night especially before the markets open, the added pressure on energy prices will come off. “But going into Monday morning…we could potentially see the reversal in the market,” he added.

Atkinson, the energy expert, said the G7’s fuel release is welcome but “doesn’t deal with the fundamental problem that the global supply remains lower than normal”.

Atkinson told Al Jazeera that “seven months after this war started in the Middle East, we are still in a situation where the global supply of crude oil or products remains significantly below pre-war levels.”

“We are now in a situation where the focus is on end use of products, mainly diesel, which is what we’re talking about here,” he added.

What has Trump said?

Soaring diesel prices have been a source of tension for the Trump administration and Republicans who fear this will cost them votes in the upcoming November midterm elections.

Last week, Trump pressured Ukraine to stop attacking Russian diesel facilities amid the war.

Then, on Thursday this week, the US president told reporters that his administration “may” ask European countries to release diesel stocks, shortly after Treasury Secretary Scott Bessent urged Europe to “immediately” tap its reserves.

Trump also threatened to impose a ban on US diesel exports if Europe did not release emergency diesel stocks.

But on Friday, Trump told reporters at the White House that Washington would not impose a diesel export ban. He said the plan was never really on the table.

“Europe has a lot of diesel, and they’re going to be making a major world contribution, and so are we. And we’re not going to be doing the export ban. We’re going to be doing what we’re supposed to do,” Trump said.

“Trump is scared by diesel prices above $6, which is a price jump of 70 percent compared to before he started the war. This is likely to get worse with US diesel inventories at their lowest seasonal level since records began in 1982. So if there is not enough diesel being produced because of the US-Israeli war on Iran, and diesel reserves have been used up, the only way to bring more diesel to the US market is by exporting less,” Frederic Schneider, a nonresident senior fellow at the Middle East Council on Global Affairs, told Al Jazeera on Friday.

After the G7 announcement, Trump wrote on his Truth Social platform: “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately.”

The White House is also reportedly preparing an executive order to tackle record-high US diesel prices that could be unveiled as early as next week, two people familiar with the process told the Reuters news agency.

Schneider noted that countries are also concerned about high energy prices since diesel and gasoline are important for economies and fulfil different roles.

“While gasoline fuels cars, diesel fuels anything from trucks, freight trains, ships, tractors, harvesters, construction machinery, mining equipment and backup generators. This means gasoline is used more by consumers while diesel is mostly used by producers, meaning a diesel price shock spreads into the price of almost everything else, most prominently food, building materials and anything delivered by truck,” he added.

Farmers are hit twice because diesel prices are rising at the same time as fertiliser prices, both of which have been pushed up by the closure of the Strait of Hormuz.

“A higher diesel price therefore acts like a tax on production and logistics, while higher gasoline prices act like a tax on consumers directly. Like higher gasoline prices, higher diesel prices risk stagflation by pushing up inflation while simultaneously squeezing margins in transport and agriculture, meaning central banks find [themselves] in a dilemma between cutting rates [helping producers] and raising rates [cutting inflation],” he said.