Diesel Surges Past Crude Gains as Middle East Tensions Drive Pump Prices Higher

Key Details Diesel retail prices jumped 8.8 cents per gallon this week to $3.897, marking the highest level since July 2024. The Department of Energy benchmark has now risen for seven consecutive weeks, gaining 43.8 cents total. Ultra low sulfur diesel futures on the CME climbed dramatically, settling at $3.1869/gallon on Tuesday, up nearly 10 percent in a single day. Why It Matters Geopolitical tensions in the Middle East are driving futures prices higher faster than crude oil gains. Retail prices typically lag behind futures, meaning drivers should expect further pump increases in the coming weeks. The current rally ranks among the largest single-day spikes in fuel costs since Russia's 2022 invasion of Ukraine. What You Need to Know ULSD futures traded as high as $3.3692/gallon during Tuesday's session, well above the settlement price. Since February 2, diesel futures have climbed 82.71 cents per gallon. AAA's national average jumped from $3.758 Friday to $3.891 by Tuesday morning, reflecting rapid real-world fuel cost changes at the pump.