Diesel Crisis Threatens to Outlast the Middle East War

AI Summary

The diesel fuel crisis expected to worsen due to the ongoing Middle East war and U.S. sanctions on Iran threatens extended disruptions in fuel supply and refining capacity. This squeeze could adversely impact the global economy for months.

The outlook for the Middle East war remains grim, the U.S. just threatened Iran with the “toughest sanctions in history,” and the world is running out of stored fuels. To make matters worse, refining capacity is down considerably, and even if the outlook for the war suddenly changed and the U.S. and Iran made peace, the fuel squeeze will last for months—and so will its adverse effects on the global economy. Watching crude oil prices, one would think everything is under control. Both Brent crude and West Texas Intermediate are…