Diesel Soars Past $200 in Europe as Hormuz Disruption Tightens Supply

Overview

• European diesel futures, which spiked nearly 10% Thursday, rose above $200 a barrel in their highest move since 2022.
• Two supply shocks are hitting at once as Hormuz traffic is choked and drone strikes hit Russian refineries, stripping major diesel export sources from the market.
• Europe, which consumes more diesel than it makes, is now bidding for longer-haul cargoes and could face shortfalls within weeks if flows do not resume.
• Crude prices also jumped after President Donald Trump signaled a tougher campaign against Iran, with WTI topping $110 and traders reporting sharp swings that show a tight near-term market.
• The squeeze is reaching consumers and state budgets as U.S. diesel tops $4 per gallon, Asia briefly touches $200 per barrel, and India says state fuel sellers lose about Rs 104 per liter on diesel.