U.S. President Donald Trump on Tuesday announced what he described as a historic investment to build a new oil refinery in the United States. The project, which he said is worth USD 300 billion, will be constructed in Brownsville. Trump also thanked India and its largest privately held energy company, Reliance Industries, for supporting the investment.

The announcement was made through a post on Truth Social, where Trump shared details about the refinery project and its significance. According to him, the refinery will be the first newly built oil refinery in the United States in nearly 50 years. He described the project as a major step toward boosting American energy production and strengthening economic partnerships with international allies.

While announcing the project, Trump expressed appreciation for the role played by India and Reliance. In his post, he wrote, "Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment." However, it was not immediately clear whether the refinery project was part of a broader agreement between the United States and India.

Trump highlighted the importance of the project for the U.S. energy sector and said it would help the country regain a strong position in global energy production. "America is returning to REAL ENERGY DOMINANCE," he said in the post.

He also announced the name of the initiative connected with the project and called it a major development for the country’s energy infrastructure. "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," Trump stated.

According to Trump, the refinery will be built at the Port of Brownsville and will serve both domestic and international energy markets. He emphasised that the facility will help fuel U.S. markets while also strengthening national security.

"A new refinery at the Port of Brownsville will fuel U.S. markets, strengthen our national security and boost American energy production," Trump said while describing the expected benefits of the project.

The U.S. president also called the investment the largest deal in the country’s history. "It is a historic $300 billion deal — the biggest in US history," he said, adding that the project would have a major economic impact on the region.

Trump further said that the refinery would create thousands of employment opportunities and contribute to the economic development of South Texas. He said the project would not only support domestic fuel demand but also expand global exports from the United States.

"It will power Global Exports, and bring THOUSANDS of long overdue Jobs and Growth to a Region that deserves it," he said in the post.

In addition to economic benefits, Trump claimed the refinery would also be environmentally advanced. According to him, the facility is expected to become "the cleanest refinery in the world" while generating billions of dollars in economic impact.

Trump also connected the investment to his administration’s economic and regulatory policies. He credited the government’s approach to taxation and permit approvals for encouraging large-scale investments in the U.S. energy sector.

"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," Trump wrote in the announcement.

He concluded the post, stating his broader economic vision and the importance of energy independence for the United States. "This is what AMERICAN ENERGY DOMINANCE looks like. AMERICA FIRST, ALWAYS!" he added.

Reports also noted that in 2024, Element Fuels Holdings, a startup based in the Dallas area, had proposed building the first entirely new U.S. oil refinery in nearly half a century. The company had said it was relaunching its plans to construct a large refinery in Brownsville.

Trump’s announcement came at a time of heightened tensions in the Middle East. The development was reported amid an ongoing conflict involving Iran and a joint front of Israel and the United States. The conflict has created major disruptions in global oil supply routes.

One of the most significant impacts has been the shutdown of the Strait of Hormuz, a crucial passage for global oil and liquefied natural gas transportation. The waterway is a key chokepoint through which about one-fifth of the world’s oil and LNG supplies pass.

Due to the conflict, tankers have been unable to sail through the strait for more than a week. As a result, several oil producers have been forced to halt pumping operations because storage facilities are filling up.

The situation has caused global crude oil prices to rise sharply. There are growing concerns about long-term disruptions to oil supplies, especially if the conflict continues to affect transit through the strategic waterway. Announcement comes at a time when global energy markets are already under pressure due to geopolitical tensions and supply uncertainties.