Diesel Prices Reach Record High in U.S. Amid Middle East Tensions and Supply Chain Issues
The national average price for a gallon of diesel has hit an all-time high of $5.85, surpassing the previous record of $5.81 set in June 2022. This surge is primarily attributed to rising geopolitical tensions in the Middle East, particularly the conflict with Iran which began in late February, limiting oil flow through the Strait of Hormuz. Additionally, other supply chain pressures have uniquely impacted diesel. Some refineries in Asia have reduced their diesel exports, further constraining the global supply. Ukraine's recent attacks on Russian oil refineries have also taken many diesel refineries offline, leading Russia to curtail its own diesel exports and even import fuel from other countries. The rising price of jet fuel has also incentivized U.S. refiners to produce more jet fuel, consequently reducing diesel output. These factors collectively contribute to the record-high diesel prices currently observed across the United States. 
