Trump urges Ukraine to stop ‘knocking out' Russian oil refineries as U.S. diesel hits record

• U.S. diesel prices surpassed $6 per gallon for the first time ever, up 63% from the previous year, affecting truckers, farmers, and industries reliant on heavy-duty fuel
• Ukraine's attacks have significantly disrupted Russia's refining capacity, forcing Moscow to extend a diesel export ban through September to stabilize domestic supplies
• Oil prices jumped sharply with Brent crude rising to $106.69 and WTI to $102.15, up over 20% in the past month, amid ongoing conflicts in Ukraine and the Middle East including Houthi attacks on Saudi infrastructure

Summary

Key Development: President Trump has publicly urged Ukrainian President Zelenskyy to halt attacks on Russian oil refineries, citing their contribution to a global diesel shortage. This request comes as U.S. diesel prices hit an unprecedented $6.06 per gallon on Friday—a 63% increase year-over-year.

Military Context: Ukraine has intensified strikes on Russian oil facilities and infrastructure in recent months as the conflict extends beyond three years. These attacks have significantly disrupted Russia's refining capacity, forcing Moscow to extend its diesel export ban through September to stabilize domestic supplies. Ukraine maintains these refineries are legitimate military targets, particularly as the country anticipates renewed Russian assaults on its own energy infrastructure.

Market Impact:

• International Brent crude futures rose 2.1% to $106.69/barrel, up over 20% in the past month
• U.S. WTI futures climbed 2.1% to $102.15, gaining nearly 25% monthly and surpassing $100 for the first time since May
• Diesel price surge severely impacts transportation, commercial shipping, mining, and agriculture sectors

Additional Pressures: Energy supply concerns are compounded by escalating Middle East tensions. Iran-backed Houthi strikes on Saudi Arabia and Iranian attacks on Gulf shipping over the weekend heightened regional supply fears. Saudi Arabia's East-West Pipeline—critical for bypassing the Strait of Hormuz—was temporarily shut Friday following a drone attack.

Bottom Line: Converging conflicts in Ukraine and the Middle East are creating significant energy supply disruptions, driving oil and diesel prices to multi-year highs with substantial implications for global transportation costs and inflation.