On Senate Floor, Warner Sounds Alarm on Rising Energy Costs from Trump's War of Choice

BROADCAST-QUALITY VIDEO OF SEN. WARNER'S SPEECH IS AVAILABLE HERE

WASHINGTON - Today, Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, delivered a speech on the Senate floor about high energy costs and broader economic impacts following President Trump's war of choice in Iran.

In his speech today, Warner detailed how the president's war with Iran is clearly a war of choice with no clear endgame and inadequate preparation. Warner highlighted how the closure of the Strait of Hormuz has wreaked havoc on global oil and gas supply chains.

"The International Energy Agency (IEA) has already called the effective closure of the Strait the worst global energy disruption in history," said Warner today.

Warner also highlighted rising costs for consumers in the U.S. as prices at the pump have increased by about a dollar gallon since the conflict began, with prices projected to reach $4 per gallon this week for the first time since 2022. Diesel prices surpassed $5 per gallon on average last week for only the second time in history - about 40 percent higher than before the war began - driving up costs across the supply chain, as higher diesel and fuel costs are expected to increase prices on everyday goods, including groceries, construction materials, and consumer products. Americans can also expect to pay more on air travel, as prices of jet fuel have more than doubled since the start of the conflict.

Warner warned about how the closure of the Strait is impacting nations and industries across the globe. About 80% of the energy supply flowing through the Strait goes to Asia. The Philippines has moved to a 4-day work week to limit fuel consumption, Vietnam has urged people to work from home, and several other countries are beginning to ration fuel. Americans will face higher prices on goods manufactured in Asia, including electronics, clothes, appliances, and more.

Warner emphasized how the closure of the Strait is also disrupting countless industries. Helium is a critical input in advanced technology, including chipmaking, medical imagining, and aerospace. A prolonged closure could take about 27 percent of the world's helium off the market and prices have already doubled. Aluminum is essential for construction, transportation, energy generation, and much more. Since the war began, global aluminum prices spiked to their highest point in nearly four years. About one-third of all fertilizer shipped globally passes through the Strait of Hormuz, but due to the closure virtually all fertilizer traffic has ceased. Global food production and the livelihoods of farmers across the world is threatened.

Warner called out the president's reaction to rising energy prices. While Americans are paying $380 million a day more on gasoline, President Trump took to Truth Social to say "when oil prices go up, we make a lot of money."

"[I]t appears two of the largest beneficiaries of President's Trump ill-conceived war are Russian and Iran," said Warner.

Warner criticized President Trump's decision to temporarily lift sanctions on Iranian and Russian oil. Tehran could net more than $14 billion from this temporary lift, and Russia could earn an estimated $230 million per day.

Warner reiterated that Trump's war of choice will have lasting, far-reaching impacts most acutely felt by working-class Americans.

Sen. Warner's full remarks as prepared are below:

I rise today nearly a month into President Trump's ill-advised War of Choice in Iran, which has destabilized the region, disrupted global supply chains, degraded our munition stockpiles, and cost the lives of 13 American servicemembers - with more than 200 others suffering injuries.

Unfortunately, it is clear the President initiated this conflict with no clear endgame and without adequately preparing for Iran's predictable response, which includes the closure of the Strait of Hormuz - one of the world's most strategically vital maritime chokepoints.

The closure of the Strait has wreaked havoc on global oil and gas supply chains. Normally, about 20 percent of the world's oil and liquefied natural gas passes through the Strait. Today, traffic through the Strait has nearly ground to a halt - down about 95 percent from pre-war levels.

The International Energy Agency (IEA) has already called the effective closure of the Strait the worst global energy disruption in history, eclipsing even the Arab oil embargo of 1973 that caused widespread fuel shortages and massive economic damage across the world.

To date, the closure of the Strait has removed approximately 400 million barrels - around four days of world supply - from the market, leading to price increases of around 50 percent for Brent crude oil (global benchmark).

Iran has also carried out significant strikes on oil and gas facilities throughout the Gulf. In total, more than 40 energy sites in nine countries across the Middle East have been severely damaged due to the conflict, including the world's largest liquefied natural gas facility in Qatar that produces about a fifth of the world's LNG.

The damage from these attacks will likely reverberate for weeks and months even once the Strait is reopened, prolonging supply shortages and economic pain across the globe.

For consumers in the U.S., the conflict has led to severe price shocks at the gas pump. Since the war began, average gas prices in the U.S. have increased by about a dollar a gallon (over 30 percent), and we're likely to see average gas prices of $4-per-gallon this week for the first time since 2022. Even if the Strait reopened today, the average household in the U.S. is still expected to pay ~$740 more in gas costs for the remainder of the year.

While Americans are struggling at the pump, skyrocketing diesel costs are threatening to increase the pain for households. Last week, diesel prices eclipsed $5 per gallon on average last week for the second time in history - about 40 percent higher than before the war began.

Diesel is the trucking industry's second-largest expense accounting for about 20 percent of operating costs. For most freight companies, a 40 percent rise in the price of diesel results in an overall cost increase of ~10 percent.

This historic increase in diesel threatens to stoke inflation and create more hardship for American families. Sustained increased diesel costs will create higher prices for about anything down the supply chain from lumber used to construct homes to groceries and everything in between.

While Americans are already feeling these impacts at the pump… nations across the globe are also facing similar or more extreme costs.

Of the energy supply flowing through the Strait of Hormuz, about 80% goes to Asia… and the impacts there have been even more acute.

As oil and gas prices skyrocket, the Philippines has moved to a 4-day work week to limit fuel consumption. Vietnam has urged people to work from home… and several other countries are beginning to ration fuel.

These costs don't stay local… in an interconnected economy, American consumers still pay the price for increased costs across the globe.

Soon, you'll be hit with higher prices for many of the countless goods manufactured in Asia… electronics, clothes, appliances, and more.

Americans can also expect to pay more on air travel due to war in Iran, as prices of jet fuel have more than doubled since the conflict began.

In many cases, airlines have already responded to this spike by raising fares and cancelling flights. Some estimates indicate airlines have raised fares by about $20 each way on average with further prices increases expected.

United recently stated its fares have risen 15 to 20 percent in the last week to offset higher fuel costs.

In addition to causing the greatest energy disruption of our lifetimes, the President's war in Iran and closure of the Strait of Hormuz is wreaking havoc on countless other industries… from semiconductors to new cars.

For example, the closure of the Strait is threatening to upend the global semiconductor industry and other advanced technology industries by impacting the availability of a crucial input - helium.

While most folks know helium as the gas used for party balloons, it is also a critical input in many advanced technology industries including chipmaking, medical imaging (MRIs), and aerospace. For many of these industries, including chipmaking, there's no viable replacement for helium.

Qatar is the world's second largest supplier of helium behind the U.S. - producing approximately a third of the world's supply - about 63 million cubic meters out of 190 million cubic meters produced globally.

A prolonged closure of the Strait could take about 27 percent of the world's helium off the market. Since the war began, spot prices of helium have doubled and could rise by another 50 percent if the Strait remains closed.

The nations expected to feel this disruption first are Japan, Singapore, South Korea, and Taiwan, which are home to the world's most advanced chip fabrication facilities. South Korean and Taiwanese manufacturers obtain approximately 65 percent to 70 percent of their helium from the Gulf.

Even if the Strait reopens soon, it will take at least several weeks to restart Qatari helium production, meaning even a relatively short-term closure could reverberate across global supply chains.

The closure of the Strait is also disrupting the aluminum supply chain - a material essential for construction, transportation, energy generation, and much more.

The region accounts for approximately 9 percent of global aluminum production (20 percent excluding China) and major smelters have been forced to curtail supply due to the continued closure of the Strait. Since the war began, global aluminum prices spiked to their highest point in nearly four years.

A prolonged closure of the Strait could have significant impacts in the U.S. Today, we rely on the Middle East for approximately 20 percent of our imported aluminum. Even before the war with Iran began, aluminum prices in the U.S. were at record highs due in large part to President Trump's 50 percent tariffs of aluminum imports and tight supplies globally.

This disruption threatens to increase costs for a variety of products from automobiles to transformers, further driving inflation for businesses and consumers.

The President's war in Iran is also threatening global food production and the livelihoods of farmers in the U.S. and across the world.

Typically, about one-third of all fertilizer shipped globally passes through the Strait of Hormuz. However, fertilizer traffic has essentially ceased - right as farmers are preparing for the spring growing season.

The U.S. relies on the Middle East for about 15 percent of our fertilizer imports. The disruption to fertilizer exports from the Gulf has already caused a ~30 percent increase in certain fertilizer prices in the U.S., and the Fertilizer Institute has estimated the U.S. is about two million tons short on nitrogen fertilizer for the spring season. If shortages persist, farmers will be forced to make difficult decisions about the upcoming growing season.

The reduced availability and increased cost of fertilizer will apply additional pressure to farmers, who are already dealing with higher costs due to President Trump's tariffs and other supply chain issues caused by the war in Ukraine and unfolding conflict in Iran… and will ultimately lead to higher costs at the grocery store for consumers.

How has President Trump responded to rising energy prices caused by his War of Choice?

Well, on Truth Social, he stated "when oil prices go up, we make a lot of money." Who exactly is making this money, Mr. President? It's not ordinary Americans, who are paying more than $380 million a day more on gasoline than they did before the war started.

On the contrary, it appears two of the largest beneficiaries of President's Trump ill-conceived war are Russian and Iran.

Last week, in response to rising oil prices President Trump announced he was temporarily lifting sanctions on 140 million barrels of Iranian crude oil, which could net Tehran more than $14 billion.

Yes, you heard me right. President Trump has eased sanctions on Iran - the country he started a war with - to get additional oil to market because the current situation he created is so dire.

In another recent masterstroke, President Trump lifted sanctions on approximately 130 million barrels of Russian oil at sea - directly helping fund Vladimir Putin's illegal war in Ukraine.

Recent reports indicate Russia has already earned an estimated $230 million per day on crude oil exports the first two weeks of the Iran War, which is 26 percent more than in February for a total approaching $10 billion…

These are just two examples that highlight the disastrous lack of preparation for this war with Iran.

Unfortunately, this is what happens when strategy is replaced with impulse, planning is replaced with wishful thinking, and warning from our intelligence professionals are ignored, instead of heeded.

While we can't predict the full long-term impacts of President Trump's War of Choice in Iran, the consequences will be far-reaching, unlikely to dissipate quickly, and be felt most acutely by working-class Americans.

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