Donald Trump’s plan to import Russian diesel to the US is faltering, with two of the first tankers diverting from their intended route. The move comes as US diesel inventories dropped below 100 million barrels for the first time in over 20 years, intensifying a supply squeeze that threatens the economy. Trump struck the deal with Vladimir Putin before the midterm elections to lower prices and boost political support, but Democrats won control of both houses of Congress in a landslide.
Tankers Talisman and Leruo, both under sanctions, have redirected away from the US Atlantic coast — one to Brazil, the other to the Mediterranean. A third vessel, Agioi Fanendes, is still heading toward New York but signals uncertainty. Analysts suggest regulatory and legislative hurdles may deter US buyers.
New Jersey Governor Mikie Sherrill warned port operators to reject Russian diesel cargoes or face penalties. Diesel prices have surged over 60% since Trump launched the Iran war, with pump prices near $6.27 per gallon. The episode highlights the difficulty of reintegrating Russia into global energy markets, even with administration backing.
Source: Financial Times Companies · Summarized by HeadlinesBriefing