- US diesel prices have surged dramatically to over $5 a gallon, the highest since December 2022, primarily due to the ongoing conflict in Iran.
- The conflict, launched by the US and Israel on 28 February, has caused some nations to slow oil production and halted tanker traffic through the vital Strait of Hormuz.
- Energy economists predict that these elevated diesel costs will trigger widespread price increases across various sectors, impacting American consumers.
- Industries heavily reliant on diesel, such as agriculture for food production and transport, and the shipping sector, are already experiencing or anticipating significant cost rises.
- The construction industry and air travel are also expected to be affected, with jet fuel prices, derived from the same crude oil, seeing even sharper increases than diesel.
IN FULL
