US diesel prices hit record high as conflicts intensify supply crunch - reuters.com

U.S. retail diesel prices have climbed to a record high, surpassing previous peaks recorded in recent years. The surge was noted across market data for the week, with the price per gallon reaching its highest point since the market’s modern tracking began.

The increase coincides with a tightening of global diesel supplies, as refiners and exporters contend with constrained inventories and reduced output. Industry monitors attribute the supply strain to a combination of lower refinery runs and limited cargo availability on major shipping routes.

Geopolitical tensions are identified as a key factor behind the supply crunch. Ongoing conflicts involving Iran and the war in Ukraine have disrupted the flow of crude oil and refined products, limiting the amount of diesel that can be shipped to the United States and contributing to the upward pressure on prices.

The record price level is expected to affect a broad range of economic activities, particularly the trucking and logistics sectors that rely heavily on diesel fuel. Higher fuel costs are likely to be passed on to consumers in the form of increased transportation and freight charges.

Analysts caution that as long as the conflicts in Iran and Ukraine persist, the diesel market may remain under pressure, keeping prices at elevated levels and sustaining the current supply challenges.