US Diesel Prices Near Record High Amid Global Supply Chain Disruptions

The price of diesel fuel in the US is on the brink of a record high, reaching $5.62 per gallon as of late August.

This is largely due to two key supply problems: Russia's fuel export ban and constrained movement through the Strait of Hormuz.

Russia's export ban has cut off supplies from the global market, while traffic through the strait has fallen from around 100 vessels per day to fewer than 10.

The high cost of diesel is having a ripple effect throughout the economy, with farmers and truckers being hit particularly hard. Diesel accounts for 3-5% of the production cost of staples like wheat and corn, and the cost of filling up tanks has jumped by nearly $2 per gallon in the past year.

This highlights the risks associated with relying on non-renewable sources of energy and contributes to air pollution that is linked to various health problems.