Diesel markets, upended by Middle East conflict, threaten global economic slowdown

Surging diesel prices tied to the Middle East war are tightening supplies of diesel and the heavy/sour crude used to make it, threatening to slow global economic activity. Higher diesel and crude tightness will raise transport and industrial fuel costs, adding upside to inflation and creating meaningful headwinds for growth and supply chains.

Analysis

Surging diesel prices tied to the Middle East war are tightening supplies of diesel and the heavy/sour crude used to make it, threatening to slow global economic activity. Higher diesel and crude tightness will raise transport and industrial fuel costs, adding upside to inflation and creating meaningful headwinds for growth and supply chains.