Trumps Iran war ignites global diesel crisis

Trump's Iran war ignites global diesel crisis

TEHRAN-As diesel prices shatter records across three continents, evidence mounts that the Trump administration's military confrontation with Iran and its failure to anticipate the Strait of Hormuz disruption have triggered a supply chain catastrophe that threatens to push the global economy into recession.

According to CNBC, U.S. diesel prices hit an all-time high of $6.31 per gallon this week, while Reuters reports the average has climbed to $6.29—a staggering 68 percent increase from a year ago. In Europe, the European Commission's data shows diesel reached €2.159 per liter, the highest since records began in 2005. These aren't abstract numbers; they represent a direct assault on working families.

The Trump administration's war with Iran, combined with its inability to prevent attacks on Saudi pipelines and the ongoing disruption in the Strait of Hormuz, has created what supply chain strategist Steve Blough calls "a perfect storm." Financial Times reports that West Asian refinery diesel exports have plummeted to roughly one-quarter of pre-war levels, while attacks on Russian refining infrastructure have removed millions of barrels per day from global markets.

The consequences ripple far beyond the pump. Home heating oil costs could surge 31 percent this winter, forcing what energy assistance director Mark Wolfe warns will require "significant sacrifices" from low-income and middle-class families. Trucking companies face $10 million headwinds. Farmers, construction firms, and public transit systems all stand to absorb crushing cost increases.

JPMorgan analysts admitted Thursday: "For the first time since the start of the Iran conflict, we don't have a baseline view. The assumption that the disruption is temporary is becoming increasingly difficult to sustain."

Perhaps most damning: Federal Reserve Chair Kevin Warsh acknowledged the crisis by referencing crack spreads—the refining margin between crude and diesel—as a key inflation driver. The Trump administration's failure to secure global energy supply chains has handed American consumers an economic war they never asked for and cannot easily escape.

source: tehrantimes.com