With Diesel Above $6.50 a Gallon After His Own Iran War Helped Spike Fuel Prices, Trump Signed an Executive Order Gutting Key Parts of the Bipartisan Graham Act Sanctions on Russia Days Before They Took Effect — and Cut a Deal With Vladimir Putin for Russia to Supply Diesel to the U.S. and Global Markets, a Move Zelensky Called "Wrong" and a Member of Congress Called a "Surrender to Putin"

In October 2026, with diesel prices spiking above $6.50 a gallon — a crisis driven substantially by the oil-market shock from Trump's own war on Iran — the president reached for relief in the worst possible place: Vladimir Putin. On October 16, Trump signed an executive order waiving key provisions of the Graham Act, the bipartisan Russia sanctions law, days before they were due to take effect, calling off planned duties on Russian goods and penalties on buying Russian oil and gas. The Treasury Department simultaneously issued a general license authorizing Russian diesel sales through April 2027. The arrangement grew out of a deal Trump announced with Putin for Russia to supply diesel to the United States and global markets. The reaction was swift and bipartisan. Ukrainian President Volodymyr Zelensky called the move "wrong"; Rep. Don Beyer called it a "surrender to Putin"; and members of Congress from both parties had already warned that easing Russian oil sanctions enables Moscow to expand the revenue streams that fund its war on Ukraine. The administration framed it as fuel-price relief. But the relief came by rewarding the aggressor, undercutting a sanctions law Congress passed with bipartisan support, and funneling hard currency to the Kremlin's war machine — to solve a price crisis that Trump's own foreign policy helped create.

There is a reason the United States sanctions Russia: to deny the Kremlin the money it uses to wage war on Ukraine and to make aggression cost something. Those sanctions are a promise — to Ukraine, to European allies, and to a bipartisan Congress that wrote them into law. Trump broke that promise to shave a dollar off a gallon of diesel, and he broke it in Vladimir Putin's favor.

What he did

On October 16, 2026, President Trump signed an executive order waiving key parts of the Graham Act — the bipartisan Russia sanctions statute — days before its provisions were due to take effect. The order called off a set of planned penalties, including:

  • Duties on Russian goods
  • Penalties for purchasing Russian oil and gas

Simultaneously, the Treasury Department issued a general license authorizing Russian diesel sales through April 2027. The moves flowed from a deal Trump announced with Putin: in exchange for the sanctions relief, Russia would supply diesel to the U.S. and global markets, easing a price spike that had pushed diesel above $6.50 a gallon. (The order left some pre-existing sanctions, imposed under earlier executive orders, in place.)

The crisis he helped cause

The justification was fuel-price relief, and the prices were real — but the context is essential, because this was in large part a self-inflicted wound. The diesel and oil shock traces substantially to Trump's own war on Iran, the conflict this archive has documented at length, which disrupted Gulf energy flows and sent fuel markets reeling. So the sequence is its own indictment: the president launched a war that spiked global fuel prices, and then used the resulting pain as the reason to hand Vladimir Putin a sanctions reprieve. He created the emergency, then cited the emergency to do Putin a favor. "Fuel-price relief" is a real need; manufacturing the need and then paying for it in Russian goodwill is not sound policy, it is a cover story.

The bipartisan alarm

The condemnation crossed party and national lines, which is rare and telling:

  • Ukrainian President Volodymyr Zelensky called the move "wrong" — the leader of the country Russia is invading, watching the United States ease the pressure on his enemy
  • Rep. Don Beyer called the waiver a "surrender to Putin"
  • Members of Congress from both parties, including Republican Rep. Don Bacon alongside Democrat Gregory Meeks, had already warned that easing Russian oil sanctions lets Moscow expand the revenue streams it uses to sustain its war against Ukraine

That is the core objection, and it is not partisan: oil and diesel are how Russia pays for the war. Every barrel the United States helps Russia sell is money that can buy another missile aimed at a Ukrainian city. A sanctions regime that Congress built specifically to choke off that revenue was waived by a single executive order, days before it bit.

The fair counterpoint

In fairness, the fuel crisis was genuine and painful; $6.50 diesel ripples through the price of everything, and a president has a legitimate interest in relieving it. The administration's energy officials argued the waiver would lower costs and that fear, not fundamentals, was driving prices. If there were no other source of relief, a grim trade-off might at least be debatable. But that is not the situation. The relief came specifically from Russia, specifically by gutting sanctions Congress passed to punish Russia, specifically via a personal deal with Putin — the arrangement most favorable to the Kremlin and most corrosive to the alliance supporting Ukraine, at a moment when the price pressure itself stemmed from the president's own war. A leader committed to both American consumers and American strategic interests looks for relief that does not finance an invasion. This one went straight to Moscow.

Why it belongs here

This archive has tracked a consistent tilt in Trump's foreign policy — easing pressure on adversaries while straining alliances — from the Helsinki warmth toward Putin to the sidelining of NATO partners. The diesel deal is the most concrete expression of it yet: not rhetoric, but a signed order and a Treasury license that put real money in Russia's pocket and took real teeth out of a bipartisan law. The president of the country Russia is invading said it was wrong. Members of his own party said it undercuts American security. They are right. A fuel-price problem has many possible answers; Trump chose the one that rewards the aggressor, weakens the sanctions, and leans on Vladimir Putin — to clean up a mess his own war helped make.

Sources & Evidence

  1. Trump waives broad new Russia sanctions, Zelenskyy condemns it as 'wrong' — CNBC
  2. Trump waives Russian sanctions outlined in Graham Act before they take effect — The Hill
  3. Trump eases Russia sanctions, says Putin will release diesel amid massive price spikes — NBC News
  4. Trump strikes deal with Putin to supply Russian diesel to U.S. and global markets — CNBC
  5. Does Trump's Russian diesel deal betray the U.S.? — WBUR (On Point)