NEW YORK - President Donald Trump said Tuesday that he supports restricting U.S. diesel exports as his administration considers whether a full or partial export ban could help address record-high diesel prices.

Trump told reporters on the sidelines of the United Nations General Assembly that he has urged members of his administration to consider keeping more domestically produced diesel inside the United States rather than exporting it.

Treasury Secretary Scott Bessent, speaking alongside Trump, confirmed that administration officials are examining whether an export restriction is feasible and whether a full or partial ban would be the better approach.

No final policy has been announced, and the administration has not provided a timeline for deciding whether restrictions will be imposed.

Diesel prices have reached record levels

The discussions come as diesel prices in the United States and Europe have climbed to record highs amid disruptions to global fuel supplies.

Wars involving Iran and Ukraine have reduced exports from several major energy-producing countries and placed additional pressure on refinery and fuel markets.

Diesel is especially important to the U.S. economy because it is widely used by trucking companies, farms, construction equipment, railroads and other industries that move goods across the country.

Higher diesel prices can increase transportation and production costs throughout the economy, with some of those expenses ultimately reaching consumers through higher prices for food and other goods.

Trump said Tuesday that he has already raised the possibility of limiting exports within his administration.

The proposal has also received support from some lawmakers representing agricultural states who argue that farmers are being hurt by high fuel costs.

Administration officials disagree over potential effects

Trump's support for restricting diesel exports places him at odds with some of his own senior energy officials.

Energy Secretary Chris Wright has warned that an export ban could produce unintended consequences for U.S. fuel markets.

Wright said restricting exports could cause diesel supplies to accumulate along the Gulf Coast, where much of the country's refining capacity and export infrastructure is concentrated.

If refiners lose access to overseas buyers, they could respond by reducing refinery operating rates, according to Wright.

Because refineries produce gasoline, diesel and other petroleum products at the same time, lower refinery production could reduce gasoline supplies as well.

Wright has argued that restrictions on fuel flows could therefore lead to higher prices in some parts of the United States rather than lowering them.

Interior Secretary Doug Burgum has also expressed concerns about a diesel export ban.

Burgum warned that other energy-producing countries could retaliate with restrictions of their own and said states that rely more heavily on imported fuels, including California, could be particularly exposed.

Regional differences complicate proposal

The geography of the U.S. refining system is one reason the effect of an export ban would not necessarily be the same across the country.

Energy Information Administration data show that the Gulf Coast accounts for the overwhelming majority of U.S. distillate fuel exports.

In June, the latest monthly data currently available from the EIA, the United States exported an average of approximately 1.43 million barrels per day of distillate fuel oil.

About 1.31 million barrels per day of that total came from the Gulf Coast.

Ultra-low-sulfur distillate, which includes the diesel used by most highway vehicles, accounted for approximately 1.23 million barrels per day of U.S. exports during the month.

The concentration of refining and export infrastructure along the Gulf Coast means keeping additional diesel in the United States would not automatically guarantee that those supplies could efficiently reach markets on the East or West coasts.

Pipeline capacity, shipping rules and regional refinery configurations can all affect where fuel can economically be transported.

Europe could also be affected

A U.S. export restriction would have consequences beyond domestic fuel markets.

Europe is a major importer of diesel and has become increasingly dependent on supplies from the United States and other exporters following disruptions to Russian energy flows.

Reuters reported that restricting U.S. exports could further tighten European diesel supplies.

Jim Mitchell, director of oil trading analytics at Wood Mackenzie, told Reuters that such a move could be damaging to U.S. allies that rely on American fuel exports.

The possibility of retaliation by other countries is another concern raised by administration officials.

A restriction intended to lower domestic prices could therefore create broader changes in international energy trade, depending on the size and duration of any ban.

Pressure from agriculture

High diesel prices have become an especially prominent issue for farmers and other businesses that consume large quantities of fuel.

Republican Sen. Chuck Grassley of Iowa called attention to the issue last week, arguing that high diesel costs were severely affecting farm income.

Agricultural operations rely heavily on diesel for tractors, combines, trucks and other equipment, making fuel prices a significant component of operating costs.

The administration is now weighing that pressure against concerns from energy officials and refiners about disrupting existing fuel markets.

What happens next

Bessent said the administration is studying both the feasibility of restricting exports and whether any action should take the form of a full or partial ban.

Important details remain unresolved, including how long restrictions would last, whether particular countries or regions would be exempt and how the government would implement the policy.

No executive action or formal export restriction had been announced as of Tuesday.

The decision could have significant consequences for U.S. trucking, agriculture, refining and consumer prices as well as for countries that currently depend on American diesel exports.

For now, Trump's comments represent a shift toward considering direct intervention in U.S. fuel exports as the administration searches for ways to respond to record diesel prices.