Diesel Prices Soar to Record High Amid Iran Conflict
GasBuddy's head of petroleum analysis, Patrick De Haan, predicts that diesel prices will reach an unprecedented $6 per gallon in the US. As of Thursday morning, the average price had already reached $5.97.
The spike in diesel prices is attributed to disruptions in oil supply following the recent attacks on Iran and its retaliatory measures affecting the Strait of Hormuz. The repeated Iranian drone and missile attacks nearly cut off oil flow through the strait, resulting in increased fuel costs in the US.
De Haan notes that shipping traffic through the waterway has decreased significantly, with just two vessels passing on Saturday and six on Sunday. Oil prices surged after the US destroyed five Iranian crude oil tankers, further exacerbating the situation.
The impact is reflected in futures markets, where traders anticipate higher oil prices. Brent crude oil futures reached $100 per barrel for the first time since July, while West Texas Intermediate futures rose to around $95 per barrel.