UK Opens Talks With Washington as Trump Threatens Diesel Export Ban

Britain has opened discussions with the United States in an attempt to head off a possible halt to American diesel shipments, Chancellor John Healey has confirmed, while officials in London simultaneously draw up contingency plans in case the flow of fuel is cut off.

In comments made to BBC News, Healey said the government was in active talks with US authorities about the threat and was preparing for the possibility that a ban could be imposed. "We're also making the provision that we may need to and we have our own stocks in the UK," he said, indicating that domestic reserves form part of the government's fallback position.

The chancellor's remarks came as diesel prices in the UK climbed to a record level on Monday, with the average cost of a litre reaching 199.18p according to the RAC motoring organisation. That figure edges past the previous peak of 199.09p recorded in June 2022, in the aftermath of Russia's full-scale invasion of Ukraine. Petrol has also continued its upward march, with a litre now priced at 174.13p.

The pressure originates from two overlapping conflicts. The war between the US-Israel alliance and Iran has, over the past seven months, badly disrupted both the production and the transportation of wholesale oil across the Middle East, pushing up the cost of refined fuels. At the same time, Russia's war in Ukraine continues to weigh on global energy markets, leaving the UK exposed to price shocks far beyond its own borders.

US President Donald Trump fuelled the uncertainty at the weekend when he said his administration was giving serious consideration to restricting diesel exports. "We're thinking about it very seriously," he said. Sources in the United States suggest the motivation is domestic: a ban could help bring down fuel costs for American consumers ahead of the critical midterm elections. The BBC has approached the White House for a response.

The stakes for Britain are considerable. Roughly one third of the diesel consumed in the UK is imported from the United States, meaning any restriction on exports would tighten supply further and almost certainly drive pump prices even higher than the current record. Diesel is not merely a consumer fuel; it powers much of the haulage, construction, farming and logistics sectors, so sustained increases feed directly into the cost of goods and services across the economy.

The RAC described the situation as unprecedented, saying diesel prices had entered "uncharted territory" and that the milestone served as a reminder of "just how exposed the UK is to events occurring far away". The organisation's warning underlines a long-standing structural vulnerability: Britain's refining capacity has shrunk over recent decades, leaving the country increasingly reliant on imports to meet demand.

Healey, speaking on the sidelines of the annual Labour Party Conference in Liverpool, acknowledged that UK diesel prices are "extreme" and insisted the government was pursuing every available route to ease the burden. He stressed the importance of the transatlantic relationship, saying: "We work very closely with the Americans," and made clear that London's preferred outcome is a diplomatic one.

"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," he said. That framing positions the price crisis not simply as an energy problem but as a consequence of geopolitical conflict that requires a political resolution.

The chancellor also said he was "very aware" of the cost of living pressures bearing down on households as he prepares what he described as a "breathing space" Budget on 28 October. The timing is delicate: fuel costs are already straining family finances, and the Treasury has limited room to manoeuvre given the wider fiscal picture.

One measure under scrutiny is fuel duty. A freeze on the levy, first introduced by the Conservative government in 2022, is due to lapse 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, increases that would compound the pain at the pumps if diesel and petrol prices remain at or near record levels.

For motorists and businesses alike, the coming weeks will hinge on two variables: whether Washington proceeds with an export ban, and whether diplomatic efforts to calm the Middle East can gain traction. Should both fail, the UK's options narrow to releasing domestic stocks, seeking alternative suppliers and potentially adjusting taxation, none of which offers a quick fix. Healey's message was blunt about the underlying remedy: "Fundamentally, what we need is a settlement in the Middle East. We need an easing of the pressure of costs on business, the costs on households and on ordinary families that we see at the pumps in the most extreme level today for diesel."

The government's dual-track approach — negotiation with Washington and preparation for the worst — reflects the limited leverage Britain holds over decisions made in the White House. With a third of diesel imports potentially at risk and prices already at an all-time high, the chancellor's talks with US counterparts may prove to be among the most consequential diplomatic efforts of the autumn.