UK Negotiates With U.S. Amid Threat to Diesel Exports

The U.S. administration is weighing protectionist trade measures, including a potential total ban on diesel exports, unless European allies tap into strategic reserves to combat a global shortage exacerbated by conflict in the Middle East. While France and Germany hold the largest emergency stockpiles, the impact of a U.S. export curb would hit Britain disproportionately. The UK currently relies on imports for over half of its diesel, with one-third of that volume originating from American refineries.

Domestic supply faces additional pressure as the Fawley refinery in Hampshire prepares for a 10-week maintenance shutdown. This facility produces roughly 20 percent of the diesel used at British forecourts and significant quantities of kerosene for Heathrow Airport. With diesel prices reaching 200p per litre—a level not seen since the onset of the war in Ukraine—filling a standard family car now costs approximately £110. Chancellor John Healey described these prices as extreme, noting that the government is pushing for a diplomatic resolution to the conflict with Iran as the most viable path to easing global energy market volatility.