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Diesel prices push to new all-time high as oil prices jump after key Saudi pipeline shut
NBC News • • business
Key Points:
- Oil prices surged on Monday after Saudi Arabia shut down the critical East-West Pipeline as a precaution, following attacks and amid tensions in the Strait of Hormuz, a key energy transit route.
- Brent crude reached $108 per barrel and U.S. crude hit $103, reflecting concerns over supply disruptions exacerbated by Iran-backed Houthi advances near the Bab el-Mandeb Strait.
- A planned meeting between Iran and Gulf countries about the Strait of Hormuz was postponed at Saudi Arabia's request, further heightening market uncertainty as vessel traffic remains significantly reduced.
- Rising crude prices have pushed U.S. gasoline to an average of $4.31 per gallon and diesel to an all-time high of $6.23 per gallon, with economists warning that high diesel costs will contribute to inflation across the economy.
- In response to soaring diesel prices linked to Russian refinery attacks by Ukraine and Russia's diesel export ban, former President Trump urged Ukraine to cease targeting Russian oil infrastructure to alleviate global fuel shortages.
