White House Splits Over Diesel Export Ban as Iran War Drives Prices Past $6.50

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The White House is barreling toward a 90-day diesel export ban as Iran War fallout sends fuel costs to record highs — and the decision has split Trump’s own cabinet.

Energy Secretary Chris Wright warned last Thursday the ban could backfire spectacularly.

“IF YOU START PUTTING BARRIERS ON FLOWS, PRETTY QUICKLY YOU WILL REDUCE THE PRODUCTION. YOU’LL HAVE LESS SUPPLY. WE NEED MORE SUPPLY, NOT LESS SUPPLY.”

Wright doubled down Wednesday during a Climate Week panel in New York City, laying out the economic chain reaction a ban would trigger.

“The blunt tool of banning diesel exports definitely doesn’t work because the U.S. exports a lot of diesel,” Wright said. “We’re the largest diesel exporter in the world, but that same refinery that produces diesel also produces gasoline and jet fuel. So, if you can’t export the diesel that comes out of our refineries when you run out of places to store it, and you have to reduce U.S. refining, which would put upward pressure on gasoline prices and jet fuel prices.”

According to Politico, the ban’s legal framework is still being hammered out — but the internal White House divide is deepening. An oil industry executive who spoke with administration officials described two warring camps.

One faction, the executive said, believes “the absolutely, sky-is-falling, we-have-to-do-something concern about prices at the pump” must drive immediate action. The opposing camp — Wright, Treasury Secretary Scott Bessent, and Interior Secretary Doug Burgum — is pushing back hard against a total ban.

The ban would mark the first U.S. diesel export restriction since 2015, when a previous embargo was lifted under Barack Obama.

Diesel prices climbed past $6.50 per gallon Tuesday, driven by the Iran War and ongoing Russian refinery damage from Ukrainian drone strikes. The crisis has created a rare split between Republican lawmakers and energy industry leaders.

Republican Iowa Sen. Chuck Grassley called on Trump to act after Iowa farmers complained prices were crushing their operations. Iowa Rep. Ashley Hinson joined the push, as did other GOP lawmakers demanding relief at the pump.

But American Petroleum Institute CEO Mike Sommers warned the cure could be worse than the disease.

“An export ban could actually mean less fuel gets produced,” Sommers said recently. “Without access to global buyers, Gulf Coast storage could fill quickly, forcing refineries to cut runs. And refineries don’t just make diesel — lower refinery runs could mean less gasoline and jet fuel, too.”

Wright echoed that warning last Thursday, telling the Daily Caller an export ban could mean “more expensive gasoline right away.”

The Iran War — along with the Russia-Ukraine conflict — continues roiling global energy markets as the White House weighs a drastic tool that divides Trump’s own team.