US president’s suggested 90-day export ban before midterm elections could bring even higher fuel prices across Europe

The EU has warned Donald Trump against plans to ban US diesel exports to the global market, saying the move would negatively affect Europe and the US.

The European Commission has reacted with “concern” to reports this week that the US president could prevent diesel from reaching the global market.

Treasury sources concede ‘less room’ for manoeuvre as global bond sell-off also hikes government’s borrowing costs

• International bodies warn of rising debt and borrowing risks

• Burnham stands by claim UK is ‘in hock’ to bond markets

Oil prices lurched upwards again on Thursday, creating a growing headache for UK policymakers ahead of John Healey’s budget next month.

While Healey has been keen to present an upbeat picture of the UK’s economic prospects, Treasury sources concede the sharp jump in oil and gas prices means they have “less room” than a month ago.