Russia has imposed a ban on diesel exports, effective until July 31, in response to its worst fuel crisis since the Soviet era. The country's deputy prime minister, Alexander Novak, cited "uneasy" fuel supply conditions, exacerbated by Ukrainian drone attacks on refineries. This move further tightens global energy markets already strained by the Iran conflict and the collapse of a U.S.-Iran ceasefire.

Russia, a major diesel exporter, has been rerouting supplies to markets like Brazil and Turkey after EU sanctions. The export ban, coupled with slowing shipping through the Strait of Hormuz, sent wholesale diesel futures in London up 14% to $1,114 a tonne and U.S. diesel prices climbing more than 13%. Analysts warn that the market lacks sufficient capacity to offset the loss of Russian supply.

This restriction is expected to keep refined product prices elevated, potentially fueling inflation, even as crude oil prices have softened. The ban aims to stabilize domestic supply, with Russia itself preparing to import refined products. The crisis is visibly impacting Russian citizens, with rationing measures and long queues at fuel stations becoming common.