Economist Peter Schiff has a warning for anyone counting on America's energy safety net: it's basically gone. In a video released Thursday, Schiff said record diesel prices and a depleted Strategic Petroleum Reserve (SPR) could leave the U.S. with far less of a buffer during a future supply shock, especially with the Iran war still simmering.

Diesel Ban May Backfire

Schiff, co-founder of Echelon Wealth Partners, didn't mince words. "We got to be getting close to a point where we can't tap into the strategic petroleum reserve anymore," he said, adding that prices were really "going to skyrocket."

Then he posed the uncomfortable question: What happens if the U.S. faces "the type of emergency that the strategic reserves were established to help us deal with?" His answer was blunt. There are no reserves left. "We've used up all of our reserve on a non-emergency," Schiff said, calling the SPR drawdown a "mistake."

He also argued that a diesel export ban could ultimately reduce domestic diesel production, making the situation worse rather than better.

Soaring Diesel Prices

Schiff pointed to the eye-watering cost of diesel, particularly in California, where prices hit $9.999 per gallon in some places. "It's insane how high they are over there," he said.

"We were going to ban exports of diesel…because we need our diesel here," the investor noted. "But whenever the government does that, it generally backfires," Schiff added.

He's not alone in that concern. Several oil producers and entities, including the U.S. Chamber of Commerce, have urged President Donald Trump to rescind the plan to ban diesel exports. Their push echoes comments from Energy Secretary Chris Wright and Secretary of the Interior Doug Burgum earlier this week.

Iran's Parliament Speaker Issues Warning

Meanwhile, Iran's Parliament Speaker Mohammad Bagher Ghalibaf took a swipe at the Trump administration over rising U.S. Treasury yields. He also warned that Iran could make Americans face gas shortages reminiscent of the 1970s gas crisis.

On another front, Iran's Security Chief Mohsen Rezaee warned neighboring countries against participating in U.S.-led restrictions over Iran's aviation sector. Rezaee added that the Strait of Hormuz will remain closed until the U.S. agrees to return to the conditions laid out in the Memorandum of Understanding (MoU).

Oil, Gas Prices

As diesel hits records, data from the American Automobile Association (AAA) on Friday showed the national average price of diesel was $6.5019 per gallon, a slight decline from Thursday's average of $6.5141. Gasoline, meanwhile, rose to $4.4918 per gallon. California had the highest average gas price at $6.2882 per gallon.

In futures markets, West Texas Intermediate (WTI) crude contracts expiring in November slipped 1.12% to $93.55 at press time. Brent futures contracts ending in November 2026 declined 0.50% to $106.07.

As oil prices slipped, ETFs tracking oil movement also declined. The United States Oil Fund (NYSE:USO) ETF fell 1.82% to $150.29 during pre-market trading on Friday. ProShares Ultra Bloomberg Crude Oil (NYSE:UCO) ETF also fell, down 1.87% to $52.35 in pre-market trading on Friday.