- US diesel futures surpassed $5 a gallon, the highest in over four years
- October diesel futures rose about 4.5% amid Middle East tensions
- Crude oil prices jumped over 4%, with Brent crude above $105 a barrel
US diesel futures surged past $5 a gallon on Thursday, hitting their highest level in more than four years, as escalating tensions in the Middle East sent crude oil prices sharply higher.
October-delivery US ultra-low sulphur diesel, or heating oil, futures on the New York Mercantile Exchange touched an intraday high of $5.0189 a gallon. The contract was last up around 4.5% at about $5.016, while the benchmark was trading at $5.0224, up 4.61%.
The latest surge comes as the Trump administration faces growing pressure over fuel prices ahead of the US midterm elections. US gasoline prices hit a record for the Labor Day holiday earlier this week, while diesel prices are expected to cross $6 a gallon in the coming days, according to the copy of a BBC report cited in the source material.
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The spike in diesel futures has coincided with a broader rally in crude. West Texas Intermediate futures climbed more than 4% to above $100 a barrel, while international benchmark Brent crude also gained more than 4%, crossing $105.
Oil prices have risen nearly 16% so far in September as markets brace for a prolonged conflict in the Middle East and growing disruption to energy and shipping routes.
The political stakes could be significant for US President Donald Trump, who has repeatedly said the conflict would ease and fuel prices would fall after the midterm elections. However, The Wall Street Journal reported that senior White House advisers have discussed with Trump the possibility that the Iran war could continue beyond January 2029, contradicting his recent claim that the conflict would end immediately after the midterms.
Trump has also accused Iran of trying to influence the US elections by pushing up energy prices. The escalation comes after fighting between Washington and Tehran intensified this month following a period of relative calm in August.
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Iran has attempted attacks on US warships, while the US military has destroyed at least eight Iranian tankers since Saturday, according to the copy provided.
Iran-backed Houthi forces in Yemen have also targeted energy infrastructure and other sites in Saudi Arabia, reportedly injuring more than 70 civilians and fuelling concerns that the conflict could widen.
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