Trump’s Russia Diesel Deal Sparks Backlash as Oil Prices Fall and Asian Markets Diverge
Donald Trump’s proposed Russian diesel purchases have drawn bipartisan criticism in the US, while oil prices declined and Asian stock markets delivered mixed performances amid uncertainty over the global energy outlook.
Oil prices fell on Monday as Asian stock markets traded mixed following US President Donald Trump’s announcement of a proposed deal to purchase Russian diesel. The plan has drawn criticism from lawmakers who say it could weaken Washington’s efforts to limit Moscow’s energy revenues.
Brent crude fell 1.4% to $103.31 a barrel, while US benchmark crude dropped 1.7% to $90.31. Energy markets remain volatile amid uncertainty over the conflict involving Iran and its impact on global supplies.
Trump said he had reached an understanding with Russian President Vladimir Putin to increase diesel supplies. He outlined deliveries of more than 300,000 tonnes initially, followed by additional shipments in November and subsequent months. The proposal comes as the US seeks to reduce Russia’s earnings from energy exports amid its war in Ukraine.
A bipartisan group of six US senators urged the administration to reverse course, arguing that the plan conflicts with Washington’s pressure on Moscow. The announcement also comes ahead of the November 3 midterm elections, as rising fuel costs remain a political concern.
Asian markets showed uneven movements. South Korea’s Kospi fell 3.1%, while Hong Kong’s Hang Seng gained 0.2%. Australia’s S&P/ASX 200 rose 0.9%, and India’s Sensex edged up 0.1%.
US stock futures advanced as investors awaited inflation and retail sales data, alongside earnings from major banks. Meanwhile, a University of Michigan survey showed that Americans’ one-year inflation expectations rose to 4.7%, highlighting continued pressure on household budgets.
