US Diesel Tops $4 a Gallon as Middle East Conflict Disrupts Hormuz Shipping

3 articles · Updated · EnergyNow.com · Jul 19

$4.04 a gallon became the U.S. diesel average after a 14.7-cent jump from Tuesday, the first move above $4 in nearly two years and the biggest daily increase since March 2022, AAA said.
Iran's retaliation against U.S. and Israeli strikes has hit regional energy infrastructure and shipping through the Strait of Hormuz, lifting diesel futures to $3.45 and tightening a market already short on supply.
900,000 barrels per day of diesel and 350,000 bpd of jet fuel leave the Gulf—about 10% and 20% of global seaborne supply—while analysts say Middle East crude is especially important for distillates.
GasBuddy said diesel could rise to $4.25-$4.45 soon, a jump that economists warn would raise freight, food and other consumer costs as U.S. gasoline prices also returned to $3 a gallon.