The White House is studying use of the Defense Production Act (DPA) to expand U.S. refining capacity as U.S.-Iran tensions expose vulnerability to global crude supply disruptions and price spikes. The proposal was discussed at a recent meeting between Trump and about a dozen U.S. refiners; no decision has been made. Refinery executives told the government federal funds would be better used to improve efficiency or expand existing plants rather than build new, costlier refineries that take years.

The White House is studying use of the Defense Production Act (DPA) to expand U.S. refining capacity as U.S.-Iran tensions expose vulnerability to global crude supply disruptions and price spikes. The proposal was discussed at a recent meeting between Trump and about a dozen U.S. refiners; no decision has been made. Refinery executives told the government federal funds would be better used to improve efficiency or expand existing plants rather than build new, costlier refineries that take years. Latest data show U.S. refinery utilization around 98%, near full capacity. U.S. national diesel prices have topped $6/gal for the first time and gasoline remains elevated. The White House says expanding refining capacity is a priority for Trump and his energy team and is evaluating regulatory reform, faster approvals and increased investment.