Diesel Prices Near Record High Amid Ongoing Middle East Conflicts

Diesel prices have risen to near-record levels in the United States, fueled by ongoing military conflicts in the Middle East and a global fuel shortage. The U.S. Energy Information Administration reported that diesel prices surged to $5.34 per gallon in the final week of July, just 50 cents shy of the all-time high set four years ago at $5.816.

The International Energy Agency forecasts that fuel prices will continue to rise before any recovery occurs, with global oil stocks declining by an average of 3.8 million barrels per day since the start of the war in Iran. The agency warns that further declines could take global oil stocks to historic lows before the market balance shifts to surplus.

Crude oil prices also traded sharply higher in July, with both Brent Crude and West Texas Intermediate benchmarks posting a monthly gain of around 20%. The geopolitical tensions affecting oil contributed to an overall volatile week for financial markets, but tech sector rebounds led by Amazon earnings provided some gains.