International diesel prices jumped 17 percent on Monday as markets across the globe reacted to escalated tensions in the Middle East over the weekend.
The surge in fuel prices comes amid disrupted shipments from the Middle East, following a de facto closure of the Strait of Hormuz by Iranian authorities.
Gasoil, commonly known as diesel, is facing the most immediate supply pressure, according to energy analytics firm Kpler. Diesel futures on the Intercontinental Exchange hit a two-year high at market open, while Brent crude rose 13%, surpassing $80 per barrel in early Asian trade.
Seaborne Diesel exports via Hormuz
| Gasoil/Diesel | ||||||
| via Strait | 99 | 32 | 193 | 377 | 16 | 716 |
| Total from World | 1,199 | 1,303 | 2,168 | 1,608 | 661 | 6,939 |
| % of Total via Strait | 8.3% | 2.4% | 8.9% | 23.4% | 2.3% | 10.3% |
Diesel is particularly vulnerable due to its concentrated regional supply, critical role in military logistics, and limited alternatives for rapid replacement. Many energy experts have opined that immediate impact of the conflict on diesel could be “very high,” with supply gaps widening sharply in the coming week.
While jet fuel and crude oil are also under pressure, diesel faces heightened risk due to the scarcity of near-term alternatives, even though only 10.3 percent of global seaborne diesel passes through the Strait of Hormuz.
Regardless, any more disruptions through closure or insurance withdrawals could trigger simultaneous supply shocks across multiple petroleum products and hike per barrel rates to new highs.
