Trump Is Looking for Diesel in All the Wrong Places
A Russia-Ukraine cease-fire isn’t guaranteed to get prices down.
TL;DR
- Average diesel price in the U.S. hit an all-time high of $6.27 per gallon, nearly double the price in late February.
- President Trump is downplaying increases as temporary and has shifted blame from the Middle East conflict to the Russia-Ukraine war, urging Ukraine to stop striking Russian oil refineries.
- The Strait of Hormuz being shut down has reduced crude oil supply, and Middle Eastern crude is particularly important for diesel production.
- Global refinery capacity is down, and damaged facilities take time to repair, meaning a cease-fire would not immediately impact prices.
- Rising diesel costs are expected to increase prices for groceries, train shipments, and home heating oil.
- The situation in the Middle East remains unstable, with recent pipeline damage and ongoing attacks by Iran-aligned militias contributing to supply risks.