European Diesel Surges Above $200 as War Disrupts Supply Routes
European diesel prices exceeded $200 per barrel for the first time since 2022, driven by supply disruptions linked to the US-Israel-Iran war and tensions in the Strait of Hormuz.
ERBIL (Kurdistan24) - In a sharp escalation reflecting deepening geopolitical tensions, European diesel prices surged past the $200 mark, driven by disruptions linked to the ongoing US-Israel-Iran war and mounting pressure on global energy supply routes.
On Thursday, European diesel futures rose above $200 per barrel for the first time since 2022. Futures traded as high as $1,498 per ton, marking an increase of up to 9.7% on ICE Futures Europe. Prices in the region have nearly doubled since the war began at the end of February.
Europe consumes more than 6 million barrels of diesel per day and produces less than it requires, relying heavily on imports, particularly from the Middle East. Prior to the war, the region was Europe’s top supplier. An October 2025 report by S&P Global showed that Middle Eastern diesel exports to Europe increased from 18.1 million metric tons in 2022 to 22.9 million in 2024, replacing Russia as the main supplier following Western sanctions related to the Ukraine war.
The surge comes as the conflict threatens supply routes through the Strait of Hormuz, a key global energy corridor. In stable conditions, roughly one-fifth of the world’s oil and liquefied natural gas passes through the waterway. Disruptions have driven prices higher across multiple energy markets.
Oil prices climbed from around $72 on Feb. 28 to $106 as of 12:06 p.m. Thursday, after reaching nearly $120 per barrel on March 9.
The impact has extended beyond diesel. Northwest European jet fuel prices reached $1,903.50 per ton on Thursday, rising by nearly $300 per ton in a single day, according to Argus Media.
Market volatility continued after Iran’s state news agency IRNA reported that Iran and Oman were drafting a protocol to monitor traffic through the Strait of Hormuz. According to Iranian Deputy Foreign Minister Kazem Gharibabadi, the plan aims to facilitate safe passage and improve services for ships, rather than impose restrictions. Reports also indicated that Tehran has been leveraging the strait by requiring ships to pay significant sums for safe transit.
Earlier on Thursday, British Foreign Secretary Yvette Cooper said Iran has been able to “hijack an international shipping route to hold the global economy hostage,” during a virtual summit involving more than 40 countries focused on the situation in the strait.
In a national address on Wednesday, US President Donald Trump warned that Iran could face severe consequences, stating it would be hit “extremely hard over the next two or three weeks,” as thousands of US troops arrived in the region.
The surge in diesel prices underscores the far-reaching economic impact of the conflict, as disruptions to critical energy routes continue to reverberate across global markets.