First US refinery in 50 years: Trump announces $300bn Texas project backed by Reliance as oil tensions rise

US President Donald Trump on Tuesday (local time) said a new oil refinery will be built in Brownsville, Texas, the first such facility to come up in the United States in nearly 50 years. The project has investment support from India’s Reliance Industries Ltd.

The announcement comes at a time when global oil markets are under pressure because of the widening conflict in West Asia. Fighting in the region has disrupted energy routes and raised fears about supply, especially around the Strait of Hormuz.

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Trump shared the news on the social media platform Truth Social. He said the refinery would strengthen US energy output and create jobs.

The US President described the project as a $300 billion investment. He called it the biggest deal in US history and thanked Reliance for partnering in the venture.

“America is returning to REAL ENERGY DOMINANCE! Today I am proud to announce that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas. THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY, A MASSIVE WIN for American Workers, Energy, and the GREAT People of South Texas! Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment,” Trump said.

He said the refinery would supply fuel to American markets and support global exports. According to Trump, the project will also bring major economic activity to South Texas.

Trump also said the refinery would create thousands of jobs in the region. He credited his administration’s policies, including faster permits and lower taxes, for attracting large energy investments.

“It is because of our America First Agenda, streamlining Permits, and lowering Taxes, that have attracted Billions of Dollars in Deals coming back to our Nation. A new Refinery at the Port of Brownsville, will fuel U.S. Markets, strengthen our National Security, boost American Energy production, deliver Billions of Dollars in Economic impact, and will be THE CLEANEST REFINERY IN THE WORLD. It will power Global Exports, and bring THOUSANDS of long overdue Jobs and Growth to a Region that deserves it. This is what AMERICAN ENERGY DOMINANCE looks like. AMERICA FIRST, ALWAYS!”, he said.

Oil markets under strain as West Asia conflict widens

The refinery plan comes as tensions in West Asia continue to shake global energy supply chains.

The crisis escalated after US-Israeli strikes on Iran on February 28 killed Iran’s Supreme Leader Ayatollah Ali Khamenei and other senior figures. Iran later launched missile and drone attacks targeting US and Israeli assets across Gulf countries, including the UAE, Kuwait, Qatar, Bahrain, Saudi Arabia, and Jordan.

The fighting has disrupted shipping through the Strait of Hormuz, one of the world’s most important oil routes. About 20 per cent of global oil shipments move through this narrow passage.

Any disruption there can quickly affect global energy prices and supply.

White House says fuel price rise will be temporary

Meanwhile, the White House said recent increases in fuel prices could ease in the coming months.

Press Secretary Karoline Leavitt said the spike in oil and gas prices was linked to the ongoing military campaign called Operation Epic Fury.

“Rest assured to the American people, recent increase in oil and gas prices is temporary and this operation will result in lower gas prices in the long term,” she told reporters.

Leavitt said prices could fall sharply once the operation achieves its national security goals.

“Americans will see oil and gas prices drop rapidly, potentially even lower than they were prior to the start of the operation,” she said.

She added that the objective was to prevent Iran from threatening the United States or its allies with nuclear weapons.