Trump backs curbs on diesel shipments abroad as U.S. prices hit record highs
Diesel prices in the U.S. have reached record levels, averaging $6.52 a gallon, prompting President Trump to endorse a ban on exports of the fuel. The U.S. sends about 1.6 million barrels of distillate fuels overseas daily, while domestic reserves have dropped to their lowest since 1882. Lawmakers from both parties have urged the administration to prioritize domestic supply to ease costs for farmers and truckers.
The record diesel prices follow a sharp rise in global fuel costs after the Strait of Hormuz became a war zone, disrupting a key shipping lane for roughly one-tenth of the world’s water-borne diesel. U.S. production has remained high, but exports of about 1.6 million barrels daily have drawn down domestic reserves to levels unseen since the late 19th century. The current debate echoes a 1975 law that effectively banned crude oil exports for four decades, until President Obama lifted it. Oil companies now oppose new restrictions, while lawmakers from both parties, including Iowa’s senators and a representative, have urged action to protect farmers and truckers.
This policy shift could ease short-term costs for households and industries reliant on diesel, potentially saving billions if prices fall. However, a ban may strain international allies facing their own fuel shortages, and critics argue global pricing would blunt the effect. The outcome could reshape energy trade relations and influence future climate policy debates, as higher fuel costs already pressure consumers and businesses nationwide.