Key Takeaways
- Trump and Zelenskiy are working on a deal to end the Russia-Ukraine war, with Trump stating that Russian President Vladimir Putin is also "willing to meet" to discuss a resolution.
- The U.S. is "examining" a possible ban on diesel exports to combat record-high domestic prices, which have surged to a national average of $6.51 per gallon.
- All Iranian airlines face a global shutdown starting Wednesday, September 23, as Treasury Secretary Scott Bessent warns foreign hubs of expulsion from the U.S. dollar system if they service sanctioned carriers.
- Scott Bessent has emerged as the frontrunner for a new "AI Czar" role, part of a planned "AI Force" initiative intended to protect the industry from foreign interference.
Diplomatic Push at the UN General Assembly
President Donald Trump met with Ukrainian President Volodymyr Zelenskiy at the United Nations in New York on Tuesday, signaling a major diplomatic push to end the ongoing conflict. Trump told reporters that both leaders are "working on a solution" and expressed confidence that Ukraine "will make a deal" to stop the fighting. Trump also revealed that he has been in frequent contact with Vladimir Putin, who he claims is open to negotiations.
Despite the optimistic tone regarding a peace deal, tensions remain high over energy infrastructure. Trump characterized Ukrainian strikes on Russian refineries as a "serious hit" to Moscow, but also blamed these attacks for driving global diesel prices to record levels. The President has reportedly urged Zelenskiy to halt strikes on diesel facilities to stabilize international markets.
Energy Crisis and Potential Export Ban
U.S. Treasury Secretary Scott Bessent confirmed on Tuesday that the administration is actively "examining" a ban on diesel exports to provide relief to American consumers. With diesel prices hitting a record $6.51 per gallon, the move is being pressured by Republican lawmakers ahead of the November midterm elections.
While Trump has backed the call for an export ban, some analysts warn that such a move could disrupt global supply chains and potentially lead to higher long-term costs. The administration is currently weighing whether a partial restriction or a full ban would be more effective in lowering pump prices.
Iran Aviation Embargo and Regional Tensions
The Trump administration is set to escalate its "Economic Fury" campaign against Tehran, with Scott Bessent announcing that all Iranian airlines will be effectively "shut down" worldwide starting Wednesday. The Treasury has warned that any foreign airport or company providing fuel, landing services, or ticket sales to Iranian carriers will be "knocked out of the dollar system."
In response to the looming embargo, Iran's Tasnim News Agency reported that flights from Tehran to Baghdad and Muscat have already been cancelled. Meanwhile, EU Foreign Minister Kaja Kallas met with Iranian Foreign Minister Abbas Araghchi on the sidelines of the UN General Assembly to discuss diplomatic prospects for reopening the Strait of Hormuz and ending the "US-Iran war."
New AI Leadership and Economic Policy
Beyond energy and war, the administration is moving to formalize its stance on emerging technology. Scott Bessent is reportedly the leading candidate for Trump’s newly proposed "AI Czar" position. This role would oversee the "AI Force," a branch modeled after the Space Force designed to safeguard U.S. data centers and ensure American dominance in the sector without imposing new regulations.
In financial markets, the New York Fed reported a successful standing repo operation on September 22, accepting $3 million in bids. This comes as the administration continues to coordinate with international partners, including recent high-level economic talks between Bessent and Chinese Vice Premier He Lifeng regarding trade and AI safety.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.