Senate Majority Leader John Thune said that he may consider banning diesel exports in a bid to keep domestic prices in check as Iran-war-driven hikes continue to impact ordinary Americans, but GasBuddy analyst Patrick De Haan has warned against such a move.
Thune Says US Could Consider Ban
Speaking to reporters on Tuesday, Thune said that the U.S. would be “open to exploring” such a move, adding that if the U.S. has the supply, an export halt “might be one way of getting” the prices to come down. The national average price of diesel, on Wednesday, surged to $6.3103/gallon, according to data shared by the American Automobile Association (AAA).
Following Thune’s comments, De Haan warned against such a measure in a post on the social media platform X. “U.S. controls on exports would be chilling, sending an unmistakable signal to the market,” he said.
The analyst then called for the need to exercise “extreme caution” based on lawmakers’ goals with such a move. “Though it may chase the queasy trader away, very delicate line,” he said.
Russia had earlier imposed a ban on exports of diesel until September 30, with President Donald Trump also asking Ukrainian President Volodymyr Zelenskyy to halt strikes on Russian oil assets, saying that it could disrupt the global oil supply chain.
Diesel Prices Skyrocket
De Haan, on Tuesday, pointed out the surging diesel prices, saying that the national average price of a gallon of diesel could reach $7 in the coming days, and also outlined that there will be a noticeable jump in fuel costs in the next 48 hours as the Iran war, as well as the Russia-Ukraine conflict, disrupt supply.
Yemen’s Iran-backed Houthis may have also struck the crucial East-West pipeline in Saudi Arabia, which was built to bypass disruptions in the Strait of Hormuz during the 1980s. Trump reportedly declined a request by Saudi Arabia’s Crown Prince Mohammed bin Salman for military support against the Houthis.
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Photo courtesy: Reuters Connect
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