Trump Strikes Russian Diesel Deal as Putin Relays Iran Peace Proposal in Wide-Ranging Call

President Donald Trump announced a deal with Russian President Vladimir Putin to release Russian-origin diesel to global markets, a sharp reversal of U.S. sanctions policy timed just weeks before the November midterms. The U.S. Treasury's Office of Foreign Assets Control formalized the arrangement by issuing General License No. 135, which temporarily authorizes transactions related to the import and delivery of Russian diesel through April 7, 2027, while keeping core financial restrictions on the Russian central bank and sovereign wealth funds in place.

The 90-minute call between Trump and Putin, which the Kremlin described as "very friendly" with neither leader wanting to hang up first, covered more ground than energy pricing. Putin also conveyed to Trump Iran's position on a possible resolution to the ongoing U.S.-Iran war, with the backing of the Iranian president, raising the prospect of a diplomatic channel through Moscow. Separately, reporting by the Israeli outlet Maariv indicated that Washington had earlier pushed Israel to launch a unilateral strike on Iran ahead of the U.S. midterms, a proposal that was subsequently dropped after IDF Chief of Staff Eyal Zamir warned it could force Israel to postpone its October 27 election. The Pentagon has instead directed CENTCOM to prepare a possible three-day strike campaign against Iran's missile and drone arsenal, energy infrastructure, and IRGC command centers. Iran has warned that any new attack would trigger an immediate response against U.S. interests.

The diesel deal drew fierce criticism from Democrats and deepened fault lines over U.S. policy toward Russia. Ukrainian President Volodymyr Zelensky called it a "weak decision," arguing that easing economic pressure on Moscow could help finance Russia's continued war effort. Peace talks between U.S. envoys and Ukrainian officials in Miami ended without a breakthrough, and the Kremlin indicated no immediate resumption of negotiations. U.S. negotiators had explored economic incentives for Moscow including releasing frozen Russian assets and easing restrictions on Belarusian potash exports, but Ukraine is pressing for stronger pressure on Russia and verifiable cease-fire guarantees.

In a separate political development, Palestinian Authority President Mahmoud Abbas formally canceled the legislative elections that had been scheduled for November 28, 2026, and set both presidential and legislative elections for September 11, 2027 via presidential decree. Palestinians have not held major elections in roughly two decades. Israeli Foreign Minister Gideon Sa'ar accused Abbas of "fooling the international community" by canceling another promised vote, and the delay came despite sustained Western pressure on the PA to proceed with the scheduled poll.