Middle East Conflicts Send Fuel Oil and Diesel Prices Soaring

Fuel oil and diesel prices have reached record highs due to ongoing conflicts in the Middle East, including the Iran conflict. Since February 28, when hostilities began, U.S. diesel prices have increased by over 55% to $5.90 per gallon, while very low sulfur fuel oil prices have risen by 76% to just under $825 a metric ton or $130 a barrel.

The price of Brent crude oil has also reached $100 a barrel as global refinery disruptions reduce crude oil processing by about 5 million barrels per day from last year. This reduction in supply, combined with rising demand, has driven up prices and tightened diesel supplies across major markets.

The Iran conflict has damaged Middle East refineries, while Ukrainian attacks on Russian refineries have limited fuel exports from both countries. China's oil imports have increased as it resumes petroleum exports banned early in the conflict, but global crude stockpiles remain low.