On Monday, 23 March, 2026, the Valero Oil Refinery at Port Arthur exploded. While the surrounding area was advised to shelter in place until the fire was put out and air quality was verified to be safe the following day, no one was injured in the blast.

Residents of Port Arthur reported feeling the ground shake late on Monday evening, and some schools in the area closed for the day as a precaution against harmful air quality. Rising smoke could be seen the following day.

The cause of the blast, as well as the extent of the damage, is still unknown. Depending on the extent of the damage and how long the refinery will be out of commission, it could significantly impact gas prices, already strained by the US-Israeli war on Iran, which has pushed Iran to blockade oil tankers bound for NATO and NATO-aligned countries travelling through the Strait of Hormuz.

In an Interview with The Associated Press, Ramanan Krishnamoorti, vice president for energy and innovation at the University of Houston, said the refinery being out of commission for an extended period would “have a huge impact on the amount of diesel that gets into the marketplace. 

The distribution of goods in the US is heavily reliant on transportation through diesel trucks, and businesses will compensate for the increased cost of shipping by raising prices for everyday consumers.