Brouillette Says Diesel Export Ban Would Be a Bad Idea

Elevated diesel prices, currently averaging $6.38, persist despite oil flows returning to pre-war levels because the market views current transit through the Strait of Hormuz as unstable, relying heavily on U.S. Navy escorts. Dan Brouillette, former U.S. Secretary of Energy, explains that the crisis is compounded by a severe refining bottleneck, with U.S. facilities operating at 98% capacity and new construction hindered by lengthy permitting and judicial challenges. While a naval blockade is effectively pressuring the Iranian economy, Brouillette warns that a domestic diesel export ban would be counterproductive, potentially forcing a halt in gasoline production since the two products are refined simultaneously. Long-term relief requires both infrastructure expansion and judicial reform to prevent endless litigation, but immediate price stabilization depends on permanently securing global maritime choke points and resolving the Russia-Ukraine conflict.