U.S. Diesel Prices Exceed $5 Amid Middle East Conflict and Supply Disruptions

U.S. average diesel prices have surpassed $5 per gallon for the second time, driven by supply disruptions from the ongoing U.S.-Israel conflict with Iran in the Middle East. Iran's blockade of the Strait of Hormuz affects 10-20% of global seaborne diesel supplies, leading Asian refiners to reduce output. This supply squeeze raises concerns about global inflation and economic growth, as diesel is vital for freight and manufacturing. The price surge also presents political challenges ahead of U.S. midterm elections.