Diesel prices hit record highs as wars squeeze global supplies

Diesel prices have hit record highs as wars in the Middle East and Ukraine squeeze global supplies, prompting the United States to consider a ban on diesel exports. The move comes as net exports from Gulf countries have fallen to a quarter of pre-war levels. International benchmark Brent oil remains above $99 a barrel, over 35 percent higher than before the Iran war began in late February. U.S. retail diesel reached $6.50 per gallon this week, its highest level in 2026, according to Rystad Energy. President Donald Trump said Tuesday he backed an export ban to ease prices. Diesel is critical for farming, mining, and shipping goods worldwide, compounding inflation pressures in many economies. Russian refinery output hit a 20-year low in June due to Ukrainian drone attacks, while a Houthi strike damaged a Saudi pump station. The International Energy Agency projects world oil supply will average 100.7 million barrels daily in 2026, down 5.7 million year-on-year.