Diesel Spikes Faster Than Crude Amid Middle East Tensions

Key Details Oil prices surged during Sunday evening U.S. trading as markets reacted to military escalation in the Middle East. Ultra low sulfur diesel (ULSD) led the charge, jumping 12.84% to $2.8415 per gallon on the CME, while Brent crude rose 7.4% to $78.27 per barrel and West Texas Intermediate gained 7.28% to $71.90. Why Diesel Climbs Harder Diesel is outpacing other petroleum products because Iranian and Saudi Arabian crude yields more distillates like diesel compared to lighter products. Potential Strait of Hormuz disruptions amplify concerns about diesel supply from the region. Pump Price Impact Ahead The national average diesel retail price stood at $3.761 per gallon Sunday, with California significantly higher at $5.107. The Department of Energy's weekly average hit $3.809 per gallon, marking six consecutive weeks of increases. If ULSD settles near current levels, it will reach the highest point since February 2024. What's Next Drivers should expect fuel surcharges to climb in the coming weeks as these wholesale price increases flow through to retail pumps. Monitor EIA weekly averages closely, as they determine most fuel surcharge adjustments.