Trump turns to Cold War-era law to tackle fuel crisis
US President Donald Trump has invoked a Cold War-era national security law to boost domestic oil production and refining, as rising fuel prices threaten the Republicans’ chances in November’s midterm elections.
Speaking on Thursday at a Republican campaign rally in Iowa – an agricultural state where farmers have been hit hard by the oil crisis – Trump announced that his administration would use the Defense Production Act (DPA) to provide up to $150 million to expand American refining capacity and produce diesel and gasoline “at record levels.”
He also predicted that the Iran and Ukraine conflicts would end soon, sending gasoline and oil prices “tumbling down.”
Enacted in 1950, the DPA allows Washington to financially support industries deemed essential to national defense. In a presidential memorandum, Trump designated domestic petroleum production, refineries, pipelines, and storage facilities as critical to national security, arguing that private companies could not expand capacity quickly enough without federal intervention.
Energy Secretary Chris Wright promised the funds would be deployed in cooperation with private companies, while the Department of Energy separately projected the initiative would increase refining output by millions of gallons of gasoline, diesel, jet fuel, and other products per day.
Vice President J.D. Vance had earlier announced plans to invoke the law to expand a Delek-operated refinery in Tyler, Texas, although such projects typically take months, if not years, to complete.
Trump’s announcement comes as his approval rating has plunged to a record low of 31% – compared with 47% when he began his second term – ahead of the midterm elections on November 3, according to a Reuters/Ipsos poll published Monday. The survey also found that 68% of Americans disapproved of his handling of the economy.
Fuel prices in America sharply rose after the US and Israel launched their war against Iran in late February, disrupting global energy supplies. According to the US Energy Information Administration, average gasoline prices have climbed from $2.94 per gallon immediately before the conflict to $4.28 in the week ending October 19, while diesel has jumped from $3.81 to $6.28 over the same period.
The Trump administration has sought to tackle the fuel crisis through several emergency measures, including releasing 172 million barrels from strategic oil reserves, relaxing gasoline-blending requirements, temporarily easing diesel regulations, and announcing additional subsidies for struggling farmers.
In early October, Trump also announced a deal with Russian President Vladimir Putin to release more than 300,000 tons of Russian diesel onto global markets, with additional supplies expected later. He has also repeatedly pressed Ukraine’s Vladimir Zelensky to halt strikes on Russian oil refineries, which he blamed for rising fuel prices.
The president’s pressure sparked pushback from Zelensky, who called Trump’s diesel deal with Moscow “a weak decision” and “not fair and not honest” while refusing to comply with the refineries ultimatum. In response, Trump suggested that Ukraine should “get a new president” instead of Zelensky, whose term expired more than two years ago, while calling continued Ukrainian strikes a “disgrace.”
