Diesel Prices Soar Amid Middle East Conflict

The Middle East conflict is causing a surge in diesel prices, affecting farmers and businesses worldwide. The price of crude oil has risen to over $US105 per barrel, up from around $70 before the conflict, making it difficult for farmers like Adrian Roles to maintain profitability.

According to Commonwealth Bank head of commodities Vivek Dhar, the war's closure of the Strait of Hormuz has left much of the world scrambling for diesel. He said only about half the amount of crude oil from before the war is being exported from the Persian Gulf.

The profit margin per barrel, known as the 'crack spread', has increased from around $24 to $69, benefiting refiners but causing economic pain for farmers and businesses.