Market Flux Event
House Democrats and a Republican introduce bill to block Trump's Russia diesel deal as Macron calls it divisive
Read this in the Market Flux appA group of House Democrats and one Republican introduced legislation on Friday to block President Donald Trump's recently announced diesel deal with Russian President Vladimir Putin, in which Trump said Russia would release diesel onto global markets as what he called a "world deal." The bill faces steep odds: Congress is out of session until after the midterms, GOP leaders have not backed efforts to constrain the president, and any bill reaching Trump's desk would almost certainly face a veto.
The move follows a wave of bipartisan resistance that has built since Trump announced the agreement. Earlier in the week a bipartisan group of senators sent a letter calling on Trump to rescind the deal, describing it as a betrayal of Ukraine. Republican Rep. Brian Fitzpatrick of Pennsylvania had separately vowed to force a House vote through a discharge petition, with outgoing GOP Rep. Don Bacon already agreeing to sign. Critics across both parties argue the deal contradicts Congress's own Russia sanctions legislation and would funnel revenue to Moscow during its ongoing war in Ukraine.
European leaders reacted sharply. French President Emmanuel Macron, speaking after an EU summit in Brussels on Friday, said the deal was "not useful" and "not good for anyone," calling it "an element of division and doubt." The agreement has also rattled Brussels more broadly, reopening debate over Russia's frozen assets and adding to existing EU budget tensions with no resolution in sight.
Energy markets moved on the news. Crude oil, gasoline and diesel futures all ticked higher shortly after the blocking bill was announced, with traders also weighing ongoing concerns about oil supply disruptions from the Middle East tied to Houthi attacks. Energy analysts have been skeptical that the additional Russian diesel supply would meaningfully lower fuel prices, undercutting Trump's core justification for the deal with less than a month before the midterm elections.
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Sources
- DeItaone*LAWMAKERS INTRODUCE BILL TO BLOCK TRUMP’S RUSSIA DIESEL DEAL
- Reuters🔊 Sources say the order to throttle Ukraine’s battlefield communications came from the White House as Zelenskiy says Trump's energy ceasefire is over. ‘The two sides are at a really nasty impasse.’ Listen to @G_Slattery on the Reuters World News podcast
- PiQMarketsTrump's oil price strategy faces two major tests this weekend Two decisions by Donald Trump this weekend will shape energy risk, with the US president opting to keep US firepower out of Saudi Arabia's conflict with the Houthis and facing a deadline on Russian diesel licenses. The Houthis have demonstrated their ability to disrupt Gulf peace with recent attacks.
- EuronewsTrump and Putin’s diesel deal rattles Brussels. A renewed fight over Russia’s frozen assets. An EU budget row with no deal in sight. French students back on the streets. The week in Europe, rounded up by #EuropeToday's @AdnanLeal from the European Council.
- FirstSquawkTRUMP: RUSSIA WILL RELEASE DIESEL OUT, IT'S A WORLD DEAL
- StaunovoFrench President Emmanuel Macron said on Friday that a diesel deal struck by US President Donald Trump with Russia was not useful and created doubts and defiance. "This decision is not good for anyone. It sends a negative signal. It a an element of division and doubt," Macron said after an EU summit in Brussels #oott