President Trump wants to increase U.S. biofuel blends into gasoline and diesel by oil refiners while reducing reliance on imported oil. Biofuels are derived from organic matter, like algae or animal waste, and can reduce greenhouse emissions compared to fossil fuels.
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“We are creating a new system that benefits American farmers,” said Environmental Protection Agency (EPA) Administrator Lee Zeldin. “We can no longer afford to continue with the same system where Americans pay for foreign competitors.”
Oil Prices Surge Amid Israel-Iran Conflict
Trump seeks to have refiners blend an all-time high of 24.02 billion gallons of biofuel into conventional fuels in 2026, marking an 8% increase from 2025, said the EPA.
The plan comes amid surging oil prices following Israel’s attack on Iran. While there haven’t been any indications, Iran could choose to block the Strait of Hormuz, which acts as a gateway for nearly 20% of global oil shipments.
Crude oil is up by over 6% today and nearly 20% during the past month.
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