Iran Conflict Drives Diesel Prices Above $200 a Barrel

The ongoing conflict in Iran has caused a significant disruption to global fuel supplies, driving diesel prices above $200 a barrel in both the US and Europe.

The Strait of Hormuz, a critical waterway for petroleum exports, has been under sustained disruption since late February 2026, resulting in losses averaging approximately 770,000 barrels per day from March through August of that year.

The impact on consumers is substantial: US households and businesses have spent an estimated $100.9 billion more on gasoline and diesel than they would have at pre-war prices, with diesel alone accounting for roughly $46 billion of that total.

Diesel crack spreads, the margin between crude oil and refined diesel prices, have exceeded $100 per barrel for the first time in recorded history, surpassing levels seen during the early months of the Russia-Ukraine war in 2022.