US diesel prices hit record $5.820 amid US-Iran tensions, Ukraine-Russia conflict

Diesel prices in the United States have reached a record high of $5.820 per gallon, driven by renewed hostilities between the US and Iran and disruptions from Ukrainian attacks on Russian refineries. This price surpasses the previous record set in June 2022, illustrating a significant tightening in the diesel market. The global supply chain disruptions, particularly in refining and exports, are reportedly feeding through to U.S. retail fuel prices, creating a ripple effect on the broader energy market. Market participants appear to interpret these developments as increasing the likelihood of crude oil reaching a new all-time high by the end of the year. Key Takeaways Diesel prices reaching a record high suggests significant pressure on global fuel supplies due to geopolitical tensions. Market pricing indicates a slight increase in the perceived likelihood of crude oil reaching a new all-time high by December 31. The current geopolitical climate, including US-Iran tensions and Ukrainian actions, appears to be a key factor influencing energy market expectations. What to Watch Observers will be monitoring actions by key figures such as OPEC’s Secretary General, Mohammad Sanusi Barkind...