China has suspended exports of oil products to destinations beyond Hong Kong and Macau, adding fresh pressure to global fuel markets already dealing with supply disruptions.

The decision was reported by Reuters on Thursday, citing four people briefed on the matter.

China tightens fuel exports

Chinese refiners have halted exports of oil products until further notice.

The decision appears to reflect concerns about domestic availability after Chinese crude and fuel inventories were recently drawn down.

The move could reduce the amount of refined fuel available to international markets.

Oil prices rise

Oil prices rose about 2% during Thursday trading.

December Brent crude reached around $100.09 per barrel, while U.S. West Texas Intermediate climbed to about $92.48.

The market remained volatile as investors assessed both China’s export decision and diplomatic developments involving the United States and Iran.

Global diesel supplies remain under pressure

The latest development comes after disruptions to refining capacity linked to conflicts in the Middle East and Ukraine.

The Trump administration has already urged Germany and France to release emergency diesel inventories as governments face pressure to limit the impact of higher fuel costs.

European diesel refining margins remain elevated after reaching a record level in September.

Why this matters

Fuel prices affect transportation, logistics, agriculture and household budgets.

A prolonged reduction in Chinese exports could therefore have consequences beyond the oil market itself.

The situation also demonstrates how decisions made by individual governments can quickly affect global commodity markets.

What happens next?

Markets will watch whether China’s export restrictions remain temporary or continue for an extended period.

Investors will also monitor U.S.–Iran diplomacy and the availability of Middle Eastern crude and refined products.

For consumers, the key issue is whether the combination of tighter fuel supplies and geopolitical uncertainty translates into another period of higher energy costs.

Read more US&Global Report.