Global Diesel Prices Hit Record Highs as War Disruptions Tighten Supply

Diesel prices in Europe and the United States reached record highs as wars in Iran and Ukraine sharply reduced exports from major producers including Russia, Saudi Arabia and the UAE, with few options to prevent further gains. European diesel futures closed at an all-time high last week, more than doubling their level at the start of 2026, after supply disruptions spread to the Red Sea. Middle East diesel exports halved year-on-year from March to August, averaging 800,000 barrels per day, according to Kpler. The region supplied nearly 41% of Europe's diesel imports in 2025. U.S. average retail diesel prices climbed above $6 a gallon for the first time on record this month, with inventories at 96.97 million barrels, nearly 15% below the five-year average. Russia, the world's second-largest diesel exporter, banned exports in July after Ukrainian drone attacks cut refinery production. The International Energy Agency warned that many refineries are already stretched to capacity, leaving few options to prevent further tightening and higher prices.