Kudlow Urges Iran Regime Change, Houthi Removal as 1.5 Million-Barrel Diesel Ban Looms
Updated
Updated · Fox Business · Sep 23
Kudlow Urges Iran Regime Change, Houthi Removal as 1.5 Million-Barrel Diesel Ban Looms
2 articles · Updated · Fox Business · Sep 23
Summary
Larry Kudlow said regime change in Iran and removing the Houthis would curb oil and diesel prices more effectively than a proposed U.S. diesel export ban, arguing reopening the Red Sea could return 2 million to 3 million barrels to market.
The plan he attacked would pull about 1.5 million barrels a day of U.S. diesel exports off the seaborne market—roughly 20% of the 8 million barrels traded—pushing global diesel prices higher.
Kudlow said cutting diesel output would also force lower crude runs and reduce gasoline production by 550,000 to 750,000 barrels a day, which some oil companies estimate could raise pump prices by about 30 cents a gallon.
He added the Northeast and East Coast would be hit hardest because they rely heavily on imported fuel, making the export curb self-defeating for U.S. consumers.
Inside the administration, Kudlow said Energy Secretary Chris Wright, Interior Secretary Doug Burgum and Treasury Secretary Scott Bessent oppose the ban, while Vice President Vance and some Republican senators support it; Trump has not made a final decision.