US Diesel Prices Soar as War and Export Bans Fuel Record-High Costs

Diesel prices have skyrocketed in recent weeks due to a collision of events. The Middle East, which produces a disproportionate share of the oil used to refine diesel, has seen its price rise faster than gasoline since the conflict began in February. The closure of the Strait of Hormuz during the war took about 20% of the world's oil off the market, raising prices for all types of fuel.

Some supply has returned, but it's nowhere near pre-war levels, said Debnil Chowdhury, who leads the Americas and Europe fuels and refining team at S&P Global Energy. Attacks by Ukraine on refineries in Russia have also taken 800,000 to 1 million barrels per day of diesel off the market.

Republican candidates are calling for an end to exports of diesel refined in the United States to help boost domestic supply and lower prices for Americans. However, economists warn that this could only increase pain for consumers, with a blanket ban on diesel exports potentially raising prices even further.