Refineries Are Now the Main Chokepoint for Global Energy Supplies

The Wall Street Journal ^ | Sept. 19, 2026 4:53 pm ET | Matthew Dalton

[E. Pluribus Unum]

The Iran and Ukraine wars have exposed the world’s reliance on the Middle East and Russia for diesel

Persian Gulf states and Russia have invested tens of billions of dollars in refineries over the past decade to grab a bigger share of the global diesel market. Now, war in both regions has sent exports plunging, squeezing supplies of a fuel that powers much of the global economy. 

Diesel prices are soaring—they eclipsed $6 a gallon in the U.S. for the first time last week and have kept climbing, hitting $6.45 on Friday. The surge has rattled governments and markets around the world that rely on diesel as the workhorse of their industry, transportation and agriculture. Shortages have appeared at gas stations in rural Brazil, in Libya and some African nations that can’t afford to import the fuel.

The Iran and Ukraine wars left the U.S. as the producer of last resort for diesel and other refined products, but momentum is now growing to ban exports of the fuel to lower prices ahead of the midterm elections. Rep. Tim Burchett (R., Tenn.) introduced a bill this week to ban exports. Senate Majority Leader John Thune (R., S.D.), said he was open to the idea.

A U.S. ban would likely send prices for the rest of the world soaring—and potentially push other big diesel exporters such as China and India to follow suit. Russia has already sharply restricted exports because of damage to its refineries caused by Ukrainian drone strikes. China has limited its refinery exports, while India has imposed an export tax on diesel and gasoline.

President Trump has blamed Ukraine’s attacks on Russian refineries for causing most of the disruption,...

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TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: armchairwhiners; bidenswar; burchett; cartersfolly; diesel; inflation; literallyhitler; makemycargo; makemytruckgo; oilrefineries; putinswar; refineries; refining; runforyourluves; surrenderinfidelscum; thatsitwelost; timburchett; timetosurrender; trucking; venezuela; wereallgonnadie; whinershatetrump

[Repeal The 17th]

Now ?
It has been that way for over 20 years.

[ClearCase_guy]

We need a lot of nuclear power plants.
We need a lot of oil refineries.

[Carry_Okie]

We are in a war. Iranians are sift through the rubble and bury their dead while we whine about the price of fuel. Those with capital survive and profit. Those who don’t stress making house payments and run up credit card debt to feed their kids because of the cost of fuel. When prices drop we’ll have trouble finding people to make deliveries.

Trump knew there would be pain, but why he has played this one out for so long giving the IRGC time to recover I just don’t understand. I do know our preparations for this war were inadequate. IMO we should have stopped after taking out the nuclear production until we were ready to go from beginning to end both militarily and economically including oil storage and refining capacity. The way this country runs, it’s always on the hairy edge as a matter of competitive maximization of return on capital.

[Bobbyvotes]

Lets face the truth, Trump got carried away by his “Art of the deal” ego. He hallucinated about making a “deal” with Iran. He forgot Iran is not a rational country or business with whom one can make deals. The way this war started, if all power plants were bombed next, war would have been over in less than 60 days, with the best possible deal and most likely change of regime.

[Carry_Okie]

He forgot Iran is not a rational country or business with whom one can make deals.

I think he projected rationality when pushed to the brink. Those suicidal maniacs think the brink is an invitation to paradise.

[JohnBovenmyer]

How much diesel refining capacity has Newson’s California closed down during his time in office? How much expansion of refining capacity did Biden’s EPA block during his term, capacity we could have now been using? GOP should be running ads pointing these out.

[piasa]

Meanwhile the Democrats are losing their minds over Trump’s Venezuelan oil deal…

[dpetty121263]

Yep Trump’s ego will destroy the nation! Trump has either reverted to his Democrat roots or losing it like Biden did..

[Paul R.]

We actually have a very comfortable export margin of refined products, including diesel: The problem is that our "surplus" is nowhere near enough to make up for the global shortfall, and all of our refined products are effectively on the global market.

There is no need to BAN exports - then what do we do with the surplus, never mind how much instability we'd cause around the world? That said, a case can be made for limiting exports to a quantity where US domestic prices drop back to 2025 levels. This would be tricky, has negatives of its own, and is QUITE socialist, but then again, we did ban crude oil exports (for the most part) from 1975-2015. Of all people, Obama signed off on ending that.

[wbarmy]

This is really Newsom’s fault. He closed 4 refineries in the last couple of years. This alone puts a huge squeeze on the prices in the USA. And he blames Trump because most people don’t look at what he is doing, the media won’t tell them.

[Drago]

Zero refineries built in the USA since 1976.

[sistergoldenhair]

This is not news. It has been the choke point for as long as I can recall. There’s too many people that have just jumped on board because of the conflict in Iran.

[Drago]

Should have added a “Refineries.gov” initiative a few years back...to compliment/funnel some of the infrastructure $$ to oil refineries instead of/in addition to the “AI.gov” initiative:

https://www.ai.gov

https://www.whitehouse.gov/releases/2025/07/white-house-unveils-americas-ai-action-plan/

[MikelTackNailer]

I’m going to stop pointing out a problem, getting ridiculed for doing so and then hear everyone cry about the problem later.

[Paladin2]

The DSA’s support and promotion of The Revolution will likely kill America. [And perhaps you, comrade...]

[kaktuskid]

12 refineries shut down in the US in the past 5 years. We have lots of crude oil, not as many places to refine it.
When they shut down the two California refineries everybody knew there would be price increases and supply issues-this was well before bombing Iran. And it has led to high prices in AZ, NV, and OR as well. And the one closed refinery in LA produced renewable diesel fuel. So you can blame the Democrats for this, not Trump.

[kaktuskid]

Then block the export of diesel for 90 days. And start putting more vegetable oil in the diesel fuel to stretch supplies-Biodiesel.

[kaktuskid]

Blame the Democrats for shutting down 2 major refineries in California. Newsom’s fault. Plus the shutdown of 10 other refineries in the last 5 years.

[Drago]

All the more reason to start the planning/build process for more refining capacity now during the Trump admin. (outside of CA)...you know the Dems will try and nix fossil fuel plans in the future.