A truck driver nicknamed “River Rat” brought traffic to a standstill on Interstate 80 in Pennsylvania.

His real name was J.W. Edwards, and he hauled meat from the Midwest to New York. In December 1973, the Arab oil embargo had made his livelihood miserable.

Diesel was expensive and difficult to find. Washington was also considering a national 55-mph speed limit.

So Edwards stopped his rig and got on his CB radio.

Other truckers joined the protest. Within an hour, hundreds of trucks had stopped, creating a 12-mile traffic jam.

Photo credit: Bernard Gotfryd, Library of Congress

Back then, truckers called diesel “motion lotion.” Without it, America’s highways could become expensive parking lots.

Edwards had stumbled onto an economic truth that Washington still struggles with more than half a century later.

When diesel becomes scarce, everything gets more expensive.

Today, with diesel averaging more than $6 a gallon, President Trump has turned to an unlikely supplier for relief.

Your Rundown for Monday, October 19, 2026...

Diesel Diplomacy

On Oct. 9, Trump announced that Russian President Vladimir Putin had agreed to supply diesel to American and global markets.

The agreement initially called for more than 300,000 metric tons of Russian diesel, with additional shipments planned. The Treasury Department subsequently authorized certain Russian diesel transactions through April 7, 2027.

Washington spent years trying to choke off Russian energy revenues. Now Washington wants Russian fuel to help ease an American energy crunch.

According to AAA, the national average retail price of diesel stood at $6.32 per gallon on Monday, Oct. 19.

That’s punishing for trucking companies, farmers, construction contractors and businesses that depend on diesel-powered equipment.

Transportation costs eventually work their way into the prices consumers pay for food, building materials and countless other goods.

Jim Rickards argues that Ukrainian attacks on Russian refineries, combined with disruptions to Persian Gulf fuel exports, have helped tighten global diesel supplies.

He also sees the emerging energy negotiations as part of a larger diplomatic strategy involving Russia, Ukraine, Europe and the U.S.

The catch is that Russia cannot simply flip a switch and make the world’s diesel shortage disappear.

In fact, the initial 300,000 metric tons amounts to less than a day of U.S. diesel demand, even if every gallon were delivered here. And the agreement calls for supplying both American and global markets.

For the week ending Oct. 9, American distillate inventories, which include diesel and heating oil, stood at approximately 102.6 million barrels, down 12% from a year earlier.

A Russian fuel agreement may help. But the global energy crunch extends well beyond diesel.

On Oct. 8, Reuters reported that American and Russian officials had discussed bringing a U.S. investor into the Nord Stream natural gas pipelines.

Those pipelines once delivered Russian gas to Germany, helping power Europe’s largest manufacturing economy.

Explosions damaged three of the four Nord Stream pipelines in September 2022. The pipelines have not returned to commercial service.

Restoring Russian natural gas supplies would require far more than American investment. Repairs, sanctions, European opposition and the war itself remain substantial obstacles.

Still, the discussions reveal how much energy policy has become entangled with diplomacy.

The story took another turn over the weekend.

According to a Reuters report published this morning, Putin has proposed a November summit involving Trump and Chinese President Xi Jinping to discuss ending the war in Ukraine.

No summit has been finalized. But the proposal suggests that energy negotiations could become part of a wider diplomatic settlement.

Lower energy costs could relieve some inflationary pressure, reduce expenses for manufacturers and improve household purchasing power.

But a diplomatic agreement is not the same thing as additional fuel arriving at American terminals.

Russia’s ability to supply diesel, the condition of its refineries and the response of European governments all matter. So does the question of whether new shipments would meaningfully expand global supply or merely redirect existing exports.

The Federal Reserve can raise or lower interest rates. It cannot manufacture diesel, repair a pipeline or reopen a shipping route.

Jim Rickards reminds us that those problems require physical supplies, functioning infrastructure and political agreements.

If Washington’s negotiations produce a meaningful increase in global energy supplies, inflation could get some welcome relief.

If they produce little more than diplomatic headlines, Americans will keep paying the price.

Market Rundown for Monday, Oct. 19, 2026

S&P 500 futures are up 0.40% to 7,735.

Oil’s down 0.35% to $101 for a barrel of WTI.

Gold is up 0.10% to $4,185.30 per ounce.

And Bitcoin’s up 1.80% to $82,300.