Diesel Hits Record Territory as Middle East Tensions Drive Oil Volatility

Key Details Diesel prices jumped 24 cents in one week, with the national average hitting $5.643 per gallon as of April 6. Fleet data now suggests actual diesel costs may already exceed the June 2022 record high of $5.50 per gallon, with preliminary numbers showing prices at $5.59 per gallon for the week of April 14. Regional Impact California leads the nation at $7.567 per gallon, up nearly 70 cents in just two weeks. New England and the Central Atlantic regions are nearing $6 per gallon, while Midwest prices remain lowest at $5.304 per gallon. Why It Matters Diesel has risen over $2 in the past year alone. Unlike the sharp 2022 spike that reversed quickly, industry experts expect current price increases to stay elevated longer due to Middle East supply concerns and geopolitical tensions affecting the Strait of Hormuz. The Root Cause Crude oil volatility stems from Middle East conflict disrupting global shipping routes. Despite record U.S. oil production, American refineries depend on imported heavy crude, making them vulnerable to supply disruptions. One-fifth of the world's oil flows through the Strait of Hormuz, which currently sees minimal transit traffic.