Diesel Prices Soar 60%, Warn Investors of Economic Volatility Ahead

Bank of America is warning that record-high diesel prices are a key economic pressure point, flashing a warning sign to investors. The average cost of diesel fuel in the US has risen by about 60% since February's Iran war broke out.

The current price of $6 per gallon marks a new all-time high for diesel in the US. In contrast, crude oil prices have climbed past $100 per barrel and pushed up regular gas prices, but investors are underestimating the broader impact of surging diesel costs, according to BofA.

Markets need to pay attention to the cost of diesel as a source of volatility, said BofA, which is the fuel source for much of the commercial economy. 'Blasé markets + bravado policy = recipe for volatility,' they added.

The higher diesel costs will impact every cargo, shipment, and delivery in America, driving up inflation across supply chains, according to GasBuddy's head of petroleum analysis, Patrick De Haan.