Trump sounds less than sold on a diesel export embargo as his team weighs 3 options short of a ban

President Trump on Sunday confirmed that he is "thinking very seriously" about an export ban on diesel, but he also acknowledged the move could have major drawbacks. To that end, his team appears to be weighing less dramatic options to combat record diesel prices.

A ban "can oftentimes lead to a little bit of an increase on gasoline for cars, so we're looking at it very seriously — we may do it," Trump told Fox on Sunday, acknowledging for the first time one of the key ways a ban could backfire.

It was also notably more cautious language from the president after he said last week he had "called for" an export ban.

Trump's latest comments come as the administration considers a series of options — some publicly pushed by top aides — amid high fuel prices just 36 days ahead of the midterm elections.

Other options include formally asking oil producers for a "voluntary" ban or limit on exports, suspending the federal diesel excise tax, and getting states further involved.

Trump's team has repeatedly stressed that many options remain open.

"No policy decision has been made at this time," especially in the direction of a ban, a White House official told Yahoo Finance on Monday. The president "is evaluating all the options on the table."

Diesel prices on Monday averaged $6.45 per gallon nationally, according to AAA , a slight decrease from last week's all-time record high of $6.52 per gallon.

But economists warn that a full ban on domestic exports would have wide-ranging and potentially destabilizing effects on the global economy.

A new analysis from Oxford Economics found that a ban could provide immediate price relief in at least some regions of the US — to the tune of prices dropping roughly 30% within weeks — but the effects wouldn't be felt evenly across the US. Beyond that, a ban would raise prices elsewhere in the world, including a possible 40%-50% jump in European wholesale prices.

A range of experts have also warned that a US export ban could lead US refineries to cut output, making any US price relief a short-term affair.

The spike in diesel prices has led to a scramble within the Trump administration for alternatives, with early voting in some states set to begin next week.

Republicans facing headwinds have been urging the White House to act, especially in farm states that are particularly affected by high diesel prices during the current harvest season.