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[BUSINESS] · United States, Russia, Iran, Saudi Arabia · 9 sources

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Diesel prices surge to record highs amid global conflicts

Diesel prices have reached record highs across North America and Europe, driven by geopolitical instability in the Middle East and the ongoing conflict between Russia and Ukraine. In the United States, the national average for diesel hit $6.52 per gallon, representing a 73% increase from levels seen prior to the conflict with Iran. In California, prices at some stations have exceeded $9 per gallon due to a combination of global tensions and local refinery shortages.

The supply strain is attributed to several factors: attacks on oil facilities and shipping routes in the Middle East, such as the Strait of Hormuz, and Ukrainian strikes on Russian refineries. These disruptions have significantly reduced the availability of refined oil products.

In the U.S., the rising costs have become a significant political issue. Some Republican lawmakers have proposed banning diesel exports to prioritize domestic supply, though energy officials warn that such a move could reduce overall supply and increase the cost of other fuels like gasoline and jet fuel. Economists note that diesel price spikes have broad implications for the global economy, affecting the costs of shipping, agriculture, and consumer goods.

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