US diesel stockpiles are projected to fall this month to their lowest level in over two decades, according to a new government report, as wars around the world, including one launched by Washington, choke flows from key export hubs. Inventories of the workhorse fuel are expected to dip below 100 million barrels for the first time since 2003, according to the Energy Information Administration’s Short-Term Energy Outlook released Wednesday.

The report, authored by Mia Gindis and Will Kubzansky, highlights the impact of global conflicts on fuel supply chains. The war with Iran, among other geopolitical tensions, has disrupted shipments from major export regions, tightening the market ahead of peak demand season.

This decline in diesel inventories could have significant implications for the US economy, affecting transportation, agriculture, and heating costs. As stockpiles dwindle, prices may rise, adding to inflationary pressures and operational challenges for businesses reliant on diesel fuel.

The EIA's projection serves as a critical warning for policymakers and industry stakeholders, urging attention to energy security and supply resilience in an increasingly volatile global environment.