Oil rises as traders weigh US diesel export talks, Hormuz strike

Charles Gorrivan, Bingyan Wang and Mia Gindis, Bloomberg News on Sep 23, 2026

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Oil rose as traders factored dislocations in global fuel markets against fresh attacks in the Strait of Hormuz.

Brent moved back above $100 a barrel in a choppy session, snapping five days of declines. European diesel futures surged Wednesday after President Donald Trump said a day earlier that he’s pushed for a ban on American exports of the fuel.

The United States has become a major diesel supplier as the world grapples with a plunge in flows from the Middle East and Russia. Concerns over the effect of a potential halt in U.S. shipments of the fuel overshadowed optimism that Saudi Arabia’s crude exports are set to recover. Energy Secretary Chris Wright said the administration is working with refiners to voluntarily curb fuel exports. Reuters earlier reported that Wright had downplayed the effectiveness of an outright export ban.

One glimmer of hope for those dreading a ban: Distillate exports slid to 1.3 million barrels a day, the lowest since late June, according to the latest Energy Information Administration data. The decrease in shipments could relieve pressure to enact an export ban. Meanwhile, domestic crude inventories rose by roughly 3 million barrels, with stockpiles at the Cushing, Oklahoma, storage hub jumping to the highest since May.

Still, attacks on ships crossing Hormuz persist. The United Kingdom Maritime Trade Operations on Wednesday reported a cargo vessel on fire and adrift after being struck while transiting the world’s most important energy chokepoint, underscoring ongoing risks even as more barrels slip through the waterway on tankers with their transponders turned off.

Saudi Arabia was said to aim for a meaningful resumption of its East-West pipeline to the Red Sea by Saturday, restoring a critical lifeline for global crude markets since the war snarled flows through the strait. The kingdom also appears to be sustaining an elevated pace of exports from the Persian Gulf.

Traders have also been watching for potential progress toward an agreement that could help to stabilize shipping through Hormuz as diplomats gather in New York for the United Nations General Assembly. Trump said officials had a “very productive” meeting, even after he threatened to “annihilate” the Islamic Republic. More meetings are planned, he added.

Multiple efforts to end the conflict have so far proved fruitless, however, including an interim deal in June that was in place for a short period. Since then, the U.S. has maintained a blockade of Iran’s ports, limiting its export revenues. In retaliation, Iran has kept attacking ships in Hormuz.

Oil has rallied by more than 60% this year, with fuels such as diesel surging even more. Rising prices at the pump have become a major concern for consumers ahead of the midterm elections in the US and a headache for the Federal Reserve and other central banks seeking to tame inflation.

If a U.S. export ban on diesel is implemented, the move threatens to squeeze markets in Europe and elsewhere. The country’s diesel exports surged to a weekly record near 2 million barrels a day last month.

And though a potential ban could lower domestic diesel prices initially, the constraints on transporting oil around the country would eventually lead inventories to fill, forcing refiners to cut production, said Hamad Hussain, senior climate and commodities economist at Capital Economics.

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(With assistance from Alex Longley.)