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Russia's Diesel Export Ban Raises Global Supply Concerns

Export ban comes as global energy markets remain under pressure from renewed U.S.-Iran tensions and concerns over shipping through the Strait of Hormuz

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Russia has imposed a full ban on diesel exports after Ukrainian drone attacks damaged refineries and triggered fuel shortages across the country, according to CNN.

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Deputy Prime Minister Alexander Novak said the measure is intended to increase domestic fuel supplies. The report said the new restrictions now apply to diesel producers as well, expanding an earlier partial export ban that mainly targeted fuel traders.

According to CNN's analysis, fuel shortages have affected almost all Russian regions, with rationing at many filling stations and reports of motorists waiting for hours to buy gasoline.

The export ban comes as global energy markets remain under pressure from renewed U.S.-Iran tensions and concerns over shipping through the Strait of Hormuz. Analysts told CNN that the move could tighten global diesel supplies and push prices higher.

Russia is the world's second-largest diesel exporter. Major buyers, including Turkey and Brazil, may now have to compete with Europe for alternative fuel supplies from the United States, India and the Middle East.

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Ukraine Hits Major Russian Refinery In Long-Range Drone Attack
According to the report, Ukraine’s military confirmed the operation, which targeted a refinery responsible for processing about 23 million metric tons of crude oil each year.

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