US President Donald Trump has called on traders to reduce fuel prices, saying that the geopolitical situation is already creating conditions for this. He made his appeal during an election rally in New York state.
“The time has come to reduce fuel prices in our country“, Trump said.
The US president linked the expected price reduction to control of the Strait of Hormuz and his agreements with Russian President Vladimir Putin. According to him, the US military has complete control of the strait, and “more oil than before the war” already passes through it with Iran.
Russia to supply diesel to US and world markets
Trump announced that Russia has agreed to supply diesel fuel to US and international markets. The first delivery should be over 300 thousand tons, followed by another 500 thousand tons in November and 1 million tons immediately after.
According to the US president, Washington will lift sanctions that restrict trade in Russian diesel for six months. He said that the agreement was reached in a conversation with Putin, who confirmed Russia's readiness to supply petroleum products to the US and world markets.
The emphasis on diesel comes against the backdrop of rising fuel prices and supply problems related to tensions around the Strait of Hormuz and the war with Iran. However, the agreement was presented publicly mainly through Trump's statements, without the announcement providing details about the specific buyers, routes and delivery times.
Zelensky criticized the agreement
Trump has already stated that he had a successful conversation with Putin, in which they discussed diesel fuel supplies. The deal envisages that Russian diesel will be directed both to the US and to the international market.
Ukrainian President Volodymyr Zelensky criticized Trump for the agreements with the Russian leader. Kiev opposes the easing of restrictions on Russian energy, since revenues from the export of petroleum products are related to the financing of the Russian military economy.
The next stage is related to the actual implementation of the announced deliveries and whether the additional quantities will reach the American market. It is the volume, timing, and method of transportation that will determine whether the agreement will have a tangible effect on fuel prices in the US.
Sources: gazeta.ru, m.interfax.ru, apnews.com