Diesel Hits 14-Month High as Hormuz Tensions Spike Fuel Costs

Key Details The DOE/EIA diesel benchmark jumped 96.2 cents per gallon to $4.859/g this week, marking the largest single-week increase in the series' 30-year history. This surge surpassed the previous record of 74.5 cents per gallon set in March 2022 when Russia invaded Ukraine. Diesel has now climbed $1.40 per gallon over eight consecutive weeks of increases. Why It Matters These price swings directly affect your fuel surcharges and operational costs. The benchmark hasn't been this high since December 2022, creating significant pressure on carrier margins and shipper negotiations. Extreme volatility has characterized markets, with ULSD trading between $3.30 and $4.47 per gallon in just 24 hours. What's Driving the Spike Uncertainty around the Strait of Hormuz transit corridor is the primary culprit. Ship transits dropped dramatically from 91 vessels on February 28 to just 4 on March 8, suggesting significant supply concerns. Some vessels are disabling transponders, making actual transit numbers unclear. Political statements about potential Iran conflict resolution have added to market whipsaw. What's Next S&P Global Energy reporting suggests restricted supplies won't ease soon, signaling continued volatility ahead. Monitor fuel market developments closely as geopolitical factors remain highly unpredictable and could further impact diesel pricing.