UK in Talks with Washington as Trump Threatens Diesel Export Ban

The British government has opened talks with the United States over a possible halt to American diesel shipments, while simultaneously drawing up contingency plans in case the flow of fuel is cut off. Chancellor John Healey confirmed the discussions, telling BBC News that ministers were preparing for a range of outcomes as the prospect of a US export ban looms over global energy markets.

The warning follows a threat from US President Donald Trump, who said over the weekend that his administration was giving serious consideration to restricting diesel exports. Speaking to reporters, Trump said: "We're thinking about it very seriously." US sources indicate the motivation is domestic politics: with critical midterm elections approaching, the White House is looking for ways to bring down fuel costs for American consumers.

Any such move would strike the UK hard. Britain sources roughly one-third of its diesel imports from the United States, so a ban would tighten an already stretched market and push pump prices to fresh records. Healey acknowledged that diesel costs in the UK are at "extreme" levels, describing the situation as one of the most acute cost-of-living pressures facing households and businesses.

The numbers bear that out. According to the RAC motoring organisation, the average price of a litre of diesel in the UK hit 199.33p on Monday, overtaking the previous record of 199.09p set in June 2022 in the aftermath of Russia's full-scale invasion of Ukraine. Petrol has not been spared either, with a litre now costing 174.23p and continuing to climb.

Healey, speaking on the sidelines of the Labour Party Conference in Liverpool, said the government was working closely with Washington. "We're also making the provision that we may need to and we have our own stocks in the UK," he said, signalling that emergency stockpiles could be drawn upon if imports are interrupted. The Chancellor stressed that the UK and US cooperate closely on energy matters and that London would press for measures that could ease the crisis.

He also pointed to the root cause of the surge. Over the past seven months, the conflict involving Iran has severely disrupted the production and transportation of wholesale oil across the Middle East, sending the cost of refined fuels soaring. Meanwhile, Russia's war in Ukraine continues to weigh on European energy security. Healey argued that the lasting solution lies in diplomacy: "In the end, we're also working with the Americans where we can try and put in place what will solve this, or at least significantly ease it, which would be a diplomatic settlement and an end to the fighting with Iran."

The RAC said diesel prices had entered "uncharted territory," warning that the figures illustrate "just how exposed the UK is to events occurring far away." The organisation's comments underline a structural vulnerability: Britain's refining capacity has shrunk in recent years, leaving the country increasingly reliant on imported refined products rather than crude alone.

For drivers and businesses, the timing could hardly be worse. A freeze on fuel duty, first introduced by the Conservative government in 2022, is due to expire at the end of the year. Under current plans, duty is scheduled to rise by 3p in January and by a further 2p in March, adding to the burden at the pumps unless the government intervenes.

Healey said he was "very aware" of these pressures as he prepares what he called a "breathing space" Budget, due on 28 October. The phrase suggests the Treasury is looking for ways to cushion households without abandoning its fiscal rules, though the Chancellor has not yet indicated whether the fuel duty freeze will be extended.

The White House has so far declined to comment on the specifics of the discussions. The BBC has contacted US officials for a response. It remains unclear whether Trump would follow through on the threat, or whether it is being used as leverage in negotiations over energy prices and trade.

If a ban were imposed, the consequences would ripple well beyond the UK. Global diesel markets are already tight, and removing a significant share of US supply would force buyers in Europe, Latin America and Africa to compete for alternative cargoes, driving up prices everywhere. Analysts note that such a step could also strain relations with allies at a moment when Western unity over Iran and Ukraine is already being tested.

For now, the UK's strategy appears to be twofold: persuade Washington to refrain from restricting exports, and prepare domestic defences in case those efforts fail. That means maximising the use of national stocks, exploring alternative suppliers and considering targeted support for the most affected sectors, from haulage to farming, which depend heavily on diesel to keep operating.

What happens next may depend as much on events in the Middle East as on decisions in Washington. A diplomatic breakthrough with Iran would relieve the pressure on oil markets far more effectively than any emergency measure. Absent that, both the UK and the US face difficult choices about how to shield consumers from a fuel crisis that shows little sign of easing.