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Diesel Benchmark Surges on Iran Conflict Tensions, Second-Largest Weekly Jump Since War Started

The Department of Energy/Energy Information Administration benchmark diesel price jumped 33.134 cents per gallon this week, marking the second-largest weekly increase since military action against Iran began. The surge follows a 96.2 cent spike on March 9, the first full week of market movement after the conflict started.

Ultra low sulfur diesel futures on the CME commodity exchange have climbed, with the contract settling Monday at $4.44/gallon—approaching a $1/gallon gain since July 2. In 11 settlements since early July, ULSD posted gains on seven occasions, with individual increases exceeding 39 cents per gallon. The benchmark price now sits 55.6 cents above levels from three weeks ago.

Renewed Houthi attack threats against Saudi Arabia and the Bab el-Mandeb strait add pressure to market sentiment, with potential disruptions to crude exports via Yanbu intensifying concerns.