🇺🇸🇺🇦🇮🇷 Diesel hit $5.97 and two separate wars are pulling on the same barrel
U.S. on-highway diesel sat between $3.50 and $3.75 for all of 2025. It's now at a record $5.97.
Trump has recently blamed the surge largely on the Russia-Ukraine war, specifically Ukraine's strikes on Russian refineries. He told Zelensky to stop hitting Russian diesel infrastructure, arguing:
“This isn’t done by the Middle East, this is done by what’s happening in Russia and Ukraine.”
But the supply picture is broader than that.
Two disruptions, unrelated to each other, both hitting middle distillates: Hormuz has taken 1.2 million barrels a day off line, and Russia's export ban another 0.8 million.
Together roughly 8% of world diesel supply.
Why this one hurts more than a gasoline spike: diesel is the fuel underneath everything else.
Trucks, rail, ships, tractors, construction plant, backup generators, farm equipment. Nobody chooses to buy less of it. Freight has to move whatever it costs, so the price passes straight through into food, materials and every delivered good in the economy. Gasoline is a household expense.
Diesel is an input cost for the entire supply chain.
And it's the hardest barrel to replace.
Refineries can't simply pivot their yield to make more of it, and the world's spare refining capacity is far tighter than its spare crude capacity. Extra crude doesn't fix a distillate shortage.
Two wars nobody connected have found the same chokepoint.
Source: EIA, Lipow Oil Associates, Reuters / Writer: Oliver
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