| Washington |
Monday, October 12, 2026 |
Trump's Russian diesel deal draws bipartisan fire and market confusionPresident Donald Trump's decision to purchase Russian diesel fuel and declare an "energy ceasefire" between Russia and Ukraine has triggered a swift and unusually bipartisan congressional rebuke, while leaving energy markets uncertain about what the deal actually means. The Treasury Department issued a general license permitting Russian diesel imports through April 2027, reversing sanctions that Congress enacted in 2022 following Russia's invasion of Ukraine. A group of seven senators — four Republicans and three Democrats — formally demanded that Trump reverse course, arguing the move violates federal law and channels revenue to Moscow's war machine. Ukraine said it learned of the arrangement only through Trump's Truth Social post; Russia struck a Ukrainian power plant within hours of the announcement. Energy analysts are raising serious supply questions. The IEA's former oil division chief told CNBC that sourcing the contracted volumes is "a mystery" without drawing down Russian domestic supply. Oil prices have dipped on the news, with Brent holding above $103 and WTI hovering near $90, but traders are pricing significant uncertainty. Watch for whether Congress pursues legislative action and whether the Treasury license survives legal challenge. |