Diesel Prices Skyrocket Amid Gulf Tensions and Rising Oil Costs

Global markets have had a patchy start to the week, with Asian shares rising due to semiconductor makers' stocks and South Korea's Kospi index climbing by around 3% to 6,900. Some traders pointed to an 'uber-bullish' outlook from Goldman Sachs predicting a further 75% rise in the Kospi to 12,000.

The AI craze has distracted from tensions in the Gulf, where Iran has announced plans to create a restricted zone outside the Strait of Hormuz. Oil prices have risen, with US crude up 0.6% or so at $96.85 a barrel and Brent firmed to $92.10.

This is bad news for diesel prices, which hit record highs last week. Diesel is the fuel that matters most for transport, shipping, farming, and manufacturing, and this inflationary pulse raises the stakes for the August US CPI report on Friday.