U.S. Strikes in Iran Drive Global Diesel Price Surge

The Federal government of the United States executed military strikes across Iran on Tuesday night, marking the most significant exchange of fire between the two nations in two months. Iranian officials report eight people killed and 108 wounded in the attacks, including four deaths at a wedding ceremony near the Strait of Hormuz.

The strikes triggered immediate volatility in energy markets, with Brent crude oil reaching near six-week highs of $97 a barrel. In Ireland, diesel prices at some forecourts have risen above €2 per litre. Fuels for Ireland reported that wholesale prices increased by 11 cent in the past week, resulting in a 14 cent increase after VAT due to rising refining and shipping costs.

Shipping traffic through the Strait of Hormuz has declined as tensions escalate. In response to the U.S. actions, Iran has expanded its list of non-compliant vessels subject to fines or detention.