The White House is actively considering using the Defense Production Act to expand U.S. oil refining capacity as the conflict with Iran drives fuel-market stress. National average diesel prices have exceeded $6 a gallon for the first time, while refinery utilization has reached 98%, leaving little spare capacity to absorb outages, maintenance or demand swings. President Trump issued an April 20, 2026, determination declaring domestic petroleum production, refining and logistics essential to national defense, and a September 8 executive order expanded energy-related DPA authorities. The Department of Energy can use Section 303 to provide financial support and incentives for qualifying production. Refiners have urged the administration to prioritize upgrades and expansions at existing plants, although America First Refining has proposed a 168,000-barrel-per-day refinery in Brownsville, Texas. The project has a 20-year offtake agreement with Reliance Industries and would be the first new U.S. refinery in nearly 50 years if completed, but its eligibility for DPA funding remains undecided. U.S. refining capacity fell by more than 1 million barrels per day between 2019 and 2023 as facilities closed or converted to renewable diesel. The administration has also used similar authority to restart California’s dormant Santa Ynez Unit and is pursuing foreign oil supplies, including a 35% U.S. government equity stake in North American Blue Energy Partners, a Venezuelan company with rights to 17 fields containing about 65 billion barrels of proven reserves. No final refining decision has been announced; investors are watching for a formal DPA invocation and regulatory or permitting changes that could accelerate new capacity.