Top Stories This Morning: Brent Crude Rises to $107; Trump Considers Banning Diesel Exports

Donald Trump stated that he is “very seriously” considering a ban on diesel exports from the U.S. amid record-high prices. The price of Brent crude exceeded $107 as hopes for the reopening of the Strait of Hormuz faded. SK Hynix shares fell 5% following reports of a potential IPO for its U.S. “granddaughter” company, Solidigm, with a valuation of up to $100 billion. Read about these and other topics in our roundup of key events as of the morning of September 28.

Oil prices rose after U.S. President Donald Trump rejected Iran’s proposal to end the conflict and reopen the Strait of Hormuz, according to CNBC. November Brent futures are up 2.8% to $107 per barrel. WTI crude for November delivery is up 1.7% to $94.1.

Tehran had proposed opening the strait within seven days and resuming nuclear talks, provided that U.S. attacks ceased, the naval blockade was lifted, and Iranian assets were released. Trump confirmed that he had rejected the proposal.

Trump said he is “very seriously” considering a ban on diesel fuel exports to lower domestic prices, according to Bloomberg. The agency noted that the retail price of diesel in the U.S. reached a record high last week, standing at about $6.50 per gallon.

The idea of restricting exports is supported by some lawmakers from agricultural states amid the fall harvest season and disruptions in the global energy market. The administration is also discussing alternatives, including voluntary export cuts by refiners and a suspension of the federal excise tax on diesel.

The U.S. and China unveiled a plan to mutually reduce import tariffs by approximately $30 billion on each side following a meeting between Donald Trump and Xi Jinping, Bloomberg reported. The U.S. intends to reduce tariffs on 77 categories of Chinese goods, including household goods, sporting goods, and toys, while China plans to reduce tariffs on 1,619 categories of American goods, including meat, seafood, dairy products, grains, coal, and medical equipment. About 90% of the affected goods will be subject to tariffs at the most-favored-nation (MFN) rate.

The parties must reduce tariffs simultaneously after completing the necessary domestic procedures. The agreement will cover, among other things, U.S. coal, wheat, corn, and sorghum. In addition, the U.S. and China will establish a working group on agriculture, with its first meeting scheduled to take place before the end of the year, the agency notes.

Chinese authorities have indicated that they may allow certain domestic companies, including ByteDance and Alibaba, to purchase Nvidia RTX PRO 5500 chips for high-performance professional computers, The Information reported, citing sources.

China's Ministry of Industry and Information Technology recently asked businesses to report their plans to purchase these chips and told some of them that the authorities intend to approve the purchases. According to industry representatives, the RTX PRO 5500 is not expected to be subject to U.S. export restrictions.

SK Hynix shares fell 5 percent—their sharpest drop in two weeks—following reports of a possible IPO by its U.S. “granddaughter” company, Solidigm, according to Bloomberg. The company is considering a U.S. listing as early as 2027 with a valuation of up to $100 billion, the agency reported on September 25. Shares of SK Hynix’s largest shareholder, SK Square, fell more than 8%, while those of its parent company, SK Inc., fell more than 6%.

Investors are concerned that Solidigm’s IPO will further complicate the group’s already multi-layered ownership structure. At the same time, analysts note that the offering could reveal Solidigm’s value and raise funds for development, but SK Hynix shareholders would forfeit a portion of the division’s future profits, the agency reports.

— The broad Japanese Topix index and the Nikkei 225 remained virtually unchanged.

— Hong Kong's Hang Seng Index rose 0.6%, while mainland China's CSI 300 Index fell 2.2%.

— In South Korea, the Kospi fell 2.5%, while the Kosdaq rose 0.6%.

— Australia's S&P/ASX 200 rose 0.3%.

— Nasdaq 100 futures were down 0.6%, while S&P 500 and Dow Jones Industrial Average futures were down 0.3%.

This article was AI-translated and verified by a human editor