The European Union spent an additional €90 billion on energy imports following the Strait of Hormuz closure, while US retail diesel prices soared to a record $6.31 per gallon. Concurrently, Russia decided to extend its producer diesel export ban through November, while China considered curbing domestic fuel exports as refiner inventories hit multi-year lows.
Global market
The European Union spent an additional €90 billion on energy imports due to the Iran conflict and Strait of Hormuz transit disruptions, declared European Commission President Ursula von der Leyen. In the United States, retail diesel prices reached a record $6.31 per gallon. Concurrently, Japan’s oil import bill surged 58.7% year-on-year, expanding the nation’s trade deficit for a fourth consecutive month, noted Daiwa Institute of Research analyst Koki Akimoto. In Asia, China prepared to restrict diesel and gasoline exports after state refiner gasoline stocks dropped 2.9% to their lowest level since 2022 and diesel inventories fell to a 15-month low. Additionally, Argentina summoned British and Israeli ambassadors over oil drilling at the Sea Lion field near the Malvinas Islands.
Russia & CIS
The Russian government decided to extend its ban on diesel fuel exports for producers until November 2026, following a meeting chaired by Deputy Prime Minister Alexander Novak. Industry and Trade Minister Anton Alikhanov stated that domestic technological independence in oil and gas equipment manufacturing reached 80%, proposing the creation of a “national oilfield services champion.” In regional infrastructure, Deputy Prime Minister Yury Trutnev projected a 3 GW power generation deficit in the Far Eastern Federal District by 2030. Meanwhile, law enforcement authorities opened a criminal investigation following a 200-ton diesel fuel spill at the Syndassko settlement in Taimyr.
Armenia
Russia’s decision to extend its diesel export ban until late October directly influences regional energy supply balances, news.am reported. Uninterrupted fuel availability within the EAEU is maintained through dedicated trade frameworks that prevent local shortages. The broader geopolitical crisis in Hormuz and Europe’s €90 billion energy import loss highlight the strategic importance of stable supply agreements with Russia. Under these conditions, retail prices for petrol, diesel, and natural gas in Armenia remain stable. Domestic energy security is sustained under long-term contracts within the EAEU, shielding consumers from price volatility recorded by international market price assessments.