U.S. Treasury bonds suffer a 'bloodbath'! Gold plunges below $4,300.

Beyond robust economic data, statements from Federal Reserve officials have further solidified market expectations of continued monetary tightening. Fed Governor Michael Barr said on Wednesday that further policy adjustments are 'likely necessary in my baseline scenario' to bring inflation back to the 2% target in a timely manner, emphasizing that 'price stability is essential to supporting maximum employment.'\n\nWill Compernolle of FHN Financial pointed out a critical shift in the nature of current economic strength: \n\nThere is a fundamental difference between an economy strong enough to withstand interest-rate hikes and one strong enough to begin fueling inflationary pressures. The former allows the Fed to focus squarely on inflation without excessive concern about labor-market deterioration; the latter demands more aggressive and urgent tightening action.\n\nTony Miano of Wells Fargo Investment Institute believes markets are entering a new cycle: \n\nThis is the market telling us that a genuine re-tightening cycle has begun. The entire yield curve is repricing in unison—meaning higher discount rates for equities, rising mortgage and corporate borrowing costs, and a higher hurdle for risk assets.\n\nEnergy Market Turbulence: Oil Prices Rebound Amid Diesel Export Controversy\n\nMeanwhile, dual disruptions in the energy market have further intensified inflation concerns.\n\nBrent crude settled above $103 per barrel, while WTI crude rose 2.4% to $92.68—ending its previous five-day losing streak—driven by persistent Middle East tensions and tight physical global supply.\n\nThe U.S. diesel crack spread plunged $12.70 to $97.85 per barrel. U.S. retail diesel prices hit a record high of $6.522 per gallon.\n\nCrude traders are bidding for prompt supplies at Cushing, Oklahoma—the largest U.S. oil storage hub—at record premiums. The WTI cash-to-three-months forward spread breached $5 per barrel for the first time since 2017—a measure reflecting the extra premium traders are willing to pay for immediate delivery versus next-month contracts.\n\nOn Iran, President Masoud Pezeshkian stated that Iran will not guarantee freedom of navigation through the Strait of Hormuz as long as sanctions and U.S. blockades remain in place—adding uncertainty to efforts by all parties to resume negotiations.\n\nAnother focal point is the White House’s stance on diesel export policy. As reported by Wall Street Journal, Energy Secretary Chris Wright said on Wednesday that the Trump administration is working with refiners to pursue voluntary diesel export restrictions instead of a full-blown ban.\n\nFollowing this news, U.S. diesel futures tumbled sharply, while European diesel futures surged, causing the transatlantic price spread to widen dramatically. U.S. ultra-low-sulfur diesel futures fell more than 7% intraday to their lowest level of the session, while European diesel futures rose over 7% to their intraday highs.\n\nNasdaq Ends Four-Day Rally; Small-Caps Lead Declines\n\nU.S. equities opened near highs but reversed course after the release of purchasing managers’ index data.\n\nThe S&P 500 fell 0.72% to 7,708.55; the Nasdaq dropped 1.13% to 26,936.04; the Dow Jones Industrial Average declined 0.68% to 51,511.59; and the Russell 2000 slid 1.77%.\n\nSmall-cap stocks—and other rate-sensitive assets—fell the hardest, given their heightened sensitivity to financing costs.

Reports indicate the Trump administration is considering a 90-day diesel export ban, later denied by the White House; U.S. Energy Secretary publicly opposes it.

The Trump administration is evaluating a diesel export ban to curb soaring fuel prices—but internal policy disagreements have become public. Energy Secretary Chris Wright explicitly stated the ban would be ineffective and could raise gasoline and jet fuel prices, directly clashing with Trump’s position.\n\nAccording to a Politico report on Wednesday citing five anonymous sources, the Trump administration is preparing a 90-day diesel export ban aimed at lowering persistently high energy prices amid mounting political pressure on Republicans ahead of the November congressional midterm elections.\n\nIn response to the Politico report, U.S. diesel futures plunged sharply—falling more than 7% at one point—while European diesel futures surged.\n\nHowever, Reuters later quoted a White House official who posted on X (formerly Twitter) stating that Politico’s report on the administration preparing a 90-day diesel export ban was inaccurate. U.S. diesel futures rebounded somewhat afterward but failed to fully recover the losses triggered by the Politico report.\n\nYet open internal divisions within the Trump administration have left the policy’s trajectory highly uncertain.\n\nEnergy Secretary Chris Wright bluntly declared at The Economist’s New York event that banning diesel exports 'would certainly not work,' warning it would force refineries to cut capacity and thereby push up gasoline and aviation fuel prices. The Department of Energy subsequently issued a statement asserting that Wright is 'fully aligned with the President' and that both are 'exploring every viable option to lower energy prices'—an effort to downplay the rift.\n\nSoaring Diesel Prices and Mounting Midterm Election Pressure\n\nU.S. diesel prices are at record highs. According to AAA data, the national average diesel price stood at $6.52 per gallon on Wednesday—up 76% year-on-year. This surge stems from the U.S.-Iran conflict and the war in Ukraine, which continue to constrain global diesel supply.\n\nSkyrocketing fuel costs have drawn loud complaints from farmers and other diesel users—and have evolved into a core political challenge for Republicans.\n\nU.S. Agriculture Secretary Brooke Rollins has raised the issue of high diesel prices directly with the President, and Republican lawmakers representing competitive districts have also ramped up pressure on the administration to act.

US Energy Secretary Seeks Voluntary Diesel Export Restrictions from Refiners

1 day ago

US Energy Secretary Chris Wright contacted major refiners to gauge support for voluntary diesel export restrictions amid surging fuel prices. The administration seeks alternatives to an export ban to lower costs ahead of midterm elections.

reuters

2026-09-24

US Energy Secretary Seeks Voluntary Diesel Export Restrictions from Refiners

US Energy Secretary Seeks Voluntary Diesel Export Restrictions from Refiners

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