Rising tensions in the Strait of Hormuz have triggered a global diesel shortage, with daily supply dropping by 1.7 million barrels and prices surging to double that of crude oil.
According to the International Energy Agency (IEA), global diesel supply fell by 1.7 million barrels per day in the third quarter. As a critical energy artery, the Strait of Hormuz handles 20 million barrels of oil daily; instability there has caused transit, insurance, and fuel costs to spike. Wholesale prices in Europe and the US have reached $220 per barrel. With combined exports from Russia and the Middle East dropping by 1.3 million barrels, global inventories are depleting, threatening to drive inflation across the shipping, transport, and industrial sectors.