US diesel hits record $6 a gallon amid Iran supply shock

US diesel prices have reached an unprecedented high of $6 per gallon, according to a report by the Financial Times. This surge is attributed to a supply shock stemming from disruptions caused by the ongoing conflict involving Iran, which has affected oil and refined-product flows through the Strait of Hormuz. The rise in diesel prices is significant as it impacts various sectors reliant on transportation, such as trucking and agriculture, potentially driving broader inflationary pressures. The national average diesel price had already set a previous record of $5.85 per gallon earlier this month, reflecting ongoing volatility in the energy market. Key Takeaways Market pricing suggests participants view the Iran supply shock as supportive of increased crude oil prices, potentially reaching new all-time highs. The current diesel price surge is consistent with scenarios where oil supply disruptions through the Strait of Hormuz impact global energy markets. Recent developments appear more consistent with scenarios where transportation and logistics costs elevate inflationary pressures in the US economy. What to Watch Observers should monitor statements from key energy authorities like O...