White House Moves Closer To Diesel Export Ban As Trump’s Iran War Continues To Roil Energy Markets

By John Loftus

The White House is moving closer to a 90-day diesel export ban as the Iran War continues to roil energy markets while diesel fuel prices reach new record highs, according to a report Wednesday.

Politico reported that the ban’s legal process is still being worked out, but the prospect has divided the White House, Republicans and oil industry executives, some of whom have called the White House directly to plead their case. It would mark the first time the U.S. banned diesel exports since 2015, when a previous ban was lifted under former President Barack Obama. (RELATED: Oil Men, Farmers And GOP Senators Clash Over Drastic Tool That Trump Could Use To Lower Prices)

An oil industry executive who discussed the ban with White House officials told Politico there are two camps within the administration.

“What has overpowered cooler heads [in the White House] is the absolutely, sky-is-falling, we-have-to-do-something concern about prices at the pump” faction, the executive said. “That camp has been swept aside by the political camp, which says, ‘dammit, something has to happen.’”

The diesel export ban gained significant momentum after Republican Iowa Sen. Chuck Grassley said prices were hurting farmers and called on Trump to take action. More Republicans, including Iowa Rep. Ashley Hinson, also came out in support of a ban while calling for an end to the war.

Critics, including American Petroleum Institute (API) CEO Mike Sommers, say restricting U.S. diesel exports could make the problem worse for consumers, farmers and the entire U.S. economy.

“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.”

Energy Secretary Chris Wright warned against an export ban, telling the Daily Caller last Thursday it could lead to “more expensive gasoline right away.” (RELATED: ‘No Slack’ Left In US Refineries As Diesel Tops $6.50 A Gallon)

“If you start putting barriers on flows, pretty quickly you will reduce the production,” Wright told Daily Caller editor-in-chief, Amber Duke. “You’ll have less supply. We need more supply, not less supply.”

Politico reported that in addition to Wright, Treasury Secretary Scott Bessent and Interior Secretary Doug Burgum have also protested a total export ban.

Wright doubled down Wednesday.

“The blunt tool of banning diesel exports definitely doesn’t work because the U.S. exports a lot of diesel,” he said during a Climate Week panel discussion in New York City. “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.”

The average price of diesel climbed over $6.50 per gallon Tuesday. The Iran War, as well as the Russia-Ukraine war, which has seen more Ukrainian drone strikes on Russian energy infrastructure, have contributed to skyrocketing costs.