Trump 'thinking about' diesel export ban, but says it could have 'negative impact' on gasoline

• Trump noted that a diesel export ban might help diesel prices 'come down a little bit' but would cause gasoline prices to 'go up a little bit', indicating a tradeoff between fuel types
• Energy Secretary Chris Wright stated diesel supplies are 'tight' due to export losses from conflicts in Russia, the Middle East, and China, though American refiners are running at record highs
• The Strait of Hormuz, a major oil throughway, saw daily exports rebound this week after ship traffic was disrupted by U.S. and Israeli attacks on Iran in late February

Summary

President Donald Trump indicated Wednesday he is reconsidering a diesel export ban, expressing concern it could negatively impact gasoline prices. While still "thinking about" the measure, Trump appeared less committed than three days earlier when he said he was "very seriously" considering it.

Key Developments:

• Trump acknowledged advisors believe an export ban would help diesel prices but "might raise the price of other things"
• The President stated "we're in a very good place," citing resumed crude exports through the Strait of Hormuz after disruptions from U.S.-Israel attacks on Iran in late February
• Energy Secretary Chris Wright reported diesel prices have declined in the past week and predicted "meaningful" further decreases in coming weeks and days

Market Context:

• Diesel prices have reached record highs due to ongoing conflicts in Iran and Ukraine
• Global diesel supplies remain tight due to export losses from Russia, the Middle East, and China
• American refineries are operating at record capacity to address supply constraints
• The Strait of Hormuz, a critical oil trade route, recently saw daily exports resume normal levels

Policy Implications:

Wright noted European allies will announce new diesel supplies to help stabilize markets. The administration discusses the export ban "every day" but appears increasingly aware of trade-offs, with Trump stating a ban would cause gasoline prices to rise while diesel prices fall only moderately.

The energy industry had warned that export restrictions would force refineries to cut production, ultimately increasing domestic energy costs.