Diesel prices in Europe have risen above €2.226 per litre, the highest level recorded, as the Middle East conflict pushes fuel costs higher.
What happened
European diesel prices surpassed €2.226 per litre, reflecting a near 40% increase since the start of hostilities between the United States and Iran. In financial markets, the price surge approaches 120% since late February.
Why it matters
The spike extends the impact of the Middle East war beyond oil and natural gas, affecting transport and logistics costs across the continent. A further rise is possible if former President Donald Trump enforces his threat to limit or ban U.S. diesel exports.
Background
The conflict began after the United States and Iran exchanged blows, prompting global energy markets to tighten. European diesel, which relies heavily on imported crude, has been especially vulnerable to supply disruptions and speculative trading.
What comes next
Analysts warn that a U.S. export restriction could tighten global diesel supplies, pushing European prices even higher. Policymakers may need to consider strategic reserves or alternative fuel strategies to mitigate the pressure on consumers and businesses.