The US oil industry has urged Donald Trump not to ban diesel exports, warning there is no "silver bullet" to the fuel price crisis after the president signalled support for a pause. Industry groups including the American Petroleum Institute, American Fuel & Petrochemical Manufacturers, the Business Roundtable, and US Chamber of Commerce signed a letter insisting there were "no easy answers" to the supply crunch.

US diesel prices surged to record highs of more than $6.50 a gallon as wars in the Middle East and Ukraine strain global supplies. Trump reversed course on Tuesday, saying "let's not send out the diesel." Treasury secretary Scott Bessent said the administration was examining whether a full or partial ban would work.

An export ban would ease US prices temporarily while wreaking havoc in Europe and Latin America. European diesel prices jumped as much as 7 per cent before US energy secretary Chris Wright played down the prospect, calling it a "blunt tool" that "definitely doesn't work." Iowa senator Chuck Grassley, who has led calls for a ban, urged Trump to disregard the oil industry's entreaties.