US diesel futures surged above $5 a gallon for the first time since April 2022, the latest sign of a deepening global fuel squeeze as wars disrupt supplies and rapidly erode fuel stockpiles around the world. Diesel in New York traded as high as $5.03 a gallon on Thursday as escalating Middle East tensions threaten further disruptions through the vital Strait of Hormuz while Ukrainian drone attacks have forced Moscow to ban exports. Futures prices are now at the equivalent of about $210 a barrel.

The rise reflects ongoing geopolitical instability impacting global energy markets, with supply chains strained by conflict in Eastern Europe and the Middle East. Analysts warn that sustained prices above $5 could increase transportation and manufacturing costs across the US economy, adding pressure to inflation trends already under scrutiny by policymakers and industry leaders.