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QUOTE OF THE WEEK: “President Trump is absolutely unwilling to hand the next administration a nuclear armed Iran,” Energy Secretary Chris Wright told Fox News this week. 

However, the Iran war has caused gas prices to soar, Wright said, “So we’re going through short term dislocation. We’ll get through well. But we’re going through a short term dislocation to fix a 47 year existential problem.” 

U.S. AWAITS IRANIAN PROPOSAL: Secretary of State Marco Rubio said the U.S. is expecting a response from Iran today on a proposal to end the war.

Rubio said he hopes “it’s a serious offer.” Iran yesterday said it was reviewing the latest proposed deal. 

Yesterday evening, the U.S. carried “self-defense strikes” against Iran after attacks on U.S. warships in the Strait of Hormuz. 

President Donald Trump today said that the ceasefire remained intact. But the president warned that the U.S. would “knock them out a lot harder, and a lot more violently,” if Iran does not accept a peace deal. 

The U.S. blockade in the Strait of Hormuz is ongoing. U.S. Central Command said that, as of today, the military has redirected 57 commercial vessels and disabled four to prevent them from entering or leaving Iranian ports. 

And, today, U.S. fighter jets fired on two unladen oil tankers attempting to pull into an Iranian port in the Gulf of Oman, according to the Financial Times. 

As for Iran’s blockade: Saudi Arabia’s Aramco has moved at least one crude tanker through the strait since the conflict began, Bloomberg reports, in addition to the two UAE tankers we mentioned yesterday. 

Oil spill off Kharg Island? Satellite images show huge new oil slicks appearing off of Kharg Island following the skirmish between Iranian forces and three U.S. destroyers yesterday, according to Ynetglobal.

Oil prices: Meanwhile, oil prices have been relatively steady today. West Texas Intermediate was up less than 1% to $95.50 as of midafternoon. Brent crude was up more than 1% to above $101.

TRUMP COUNCIL PROPOSES CHANGES TO FEMA: The Federal Emergency Management Agency Review Council has recommended sweeping changes to how the agency provides disaster assistance. 

The 12-person council, which was picked by the president, voted on a report yesterday afternoon at the White House to undertake a major overhaul of the agency. The council consists of former governors, local officials, emergency managers, and others. It is co-chaired by Defense Secretary Pete Hegseth and Homeland Security Secretary Markwayne Mullin. 

The report provides several recommendations on how the agency disburses its disaster funds, grants, and other assistance. 

For instance, one of the recommendations raises the threshold for states to qualify for federal disaster funds. Also, instead of waiting for FEMA to reimburse states, it recommends providing states with a sum of money to pay for disaster damages beforehand. 

Another recommendation would make it easier for disaster survivors to apply for help. It would also revamp the National Flood Insurance Program. The recommendations do not call for FEMA’s workforce to be cut in half, as early reporting on the draft suggested. 

The recommendations will be sent to Trump, but would need congressional approval. 

PLATNER BLAMES BIG OIL AND AVOIDS DATA CENTER DEBATE WITH ENERGY PLAN: Maine Democratic Senate candidate Graham Platner introduced an energy plan that focuses on blaming oil companies for high energy costs but notably avoids a clear stance on data centers.

Platner is set to be the Democratic nominee to take on Republican Sen. Susan Collins after forcing the more establishment-aligned Gov. Janet Mills out of the race. Although he got support from Sen. Bernie Sanders and others on the party’s left wing, Platner declined to endorse the data center moratorium championed by them, according to Politico. 

What the plan does include: A tax on oil and gas companies, a clean energy fund, and a freeze on electricity rate hikes, as well as a gas tax pause. 

SOLAR FACTORIES SHUNNED BECAUSE OF CHINA RESTRICTIONS: Business partners, including solar developers and banks, are steering clear of a number of new U.S. solar panel factories because of restrictions on Chinese-linked businesses attached to tax credits by the One Big Beautiful Bill Act, according to new reporting from Reuters. 

“It’s holding up financings of desperately needed solar and storage projects,” Keith Martin, an attorney at Norton Rose Fulbright, told the publication. 

What’s driving this: The GOP law blocks manufacturing credits, which the industry sees as critical, from going to factories that are tied to China, including if they are more than 25% owned by a Chinese company. 

Why it matters: The policy is meant to address Chinese dominance in the supply chain and help with reshoring production. But it also threatens to slow the deployment of solar energy. 

Chinese-linked factories account for about 40% of U.S. manufacturing capacity, according to Reuters. “Very few Chinese manufacturers are actually decoupling themselves from their U.S. factories entirely,” Wood Mackenzie analyst Elissa Pierce said. 

UKRAINE HITS TWO REFINERIES DEEP WITHIN RUSSIA WITH DRONES: Ukraine said that it used drones to strike multiple oil facilities deep within Russia, adding to the run of successes it has had in recent weeks of inflicting damages on Russia’s oil infrastructure and possibly limiting its ability to gain from the run-up in oil prices. 

President Volodymyr Zelensky said that drones hit a refinery in Yaroslavl, 175 miles northeast of Moscow, and a refinery and pumping station in Perm, 930 miles east of Moscow. 

The two are among the 10 largest refineries in Russia. Daily refining in Russia is now at its lowest level since 2009 because of Ukraine’s attacks. 

COLORADO RIVER TO HIT RECORD LOWS: The Colorado River will hit record lows this summer due to melting snowpack in the Rocky Mountains in Colorado, Utah, and Wyoming.  

Reuters reported that, according to federal forecasts, the Colorado River is expected to carry far less water into Lake Powell this spring and summer due to a March heatwave that melted snow that fell during the warm and dry winter. 

This spring and summer the runoff into Lake Powell will be the lowest since 1963, which supplies water to Los Angeles, Phoenix, and Las Vegas. However, Arizona, California, and Nevada last week agreed on a plan to decrease their water use. 

RUNDOWN

Reuters Trump’s crackdown on China-linked solar firms stalls U.S. factory boom

The Associated Press Despite gains combating deforestation in Brazil’s Amazon, forest degradation is a looming threat

Inside Climate News As a Colorado Aquifer Runs Low, Dangerous Heavy Metals Threaten Rural Communities’ Drinking Water