Diesel prices in the United States have surged to a record high, with the national average per gallon hitting a new all-time peak of 6.29 dollars this week, up nearly 80% year to date, according to data from TradingView. Meanwhile, Bitcoin has fallen nearly 12% to 76,400 dollars for the year. Gold has been largely steady, easing back from its record high of 5,600 dollars set earlier this year. A spike in retail pump prices of this kind typically feeds through to transport costs and supply chains, ultimately affecting consumer goods prices. JPMorgan said in a research note on Tuesday that higher diesel prices can affect inflation by showing up first in business costs and then potentially in consumer goods prices over time, depending on cost pass-through and purchasing demand. The main driver behind the rise in diesel prices is geopolitical tension in the Middle East, including the ongoing conflict between the United States and Israel on one side and Iran on the other, which has disrupted crude oil flows and widened the risk premium on refined products. In addition, tight refining capacity and strong demand from both the freight and industrial sectors have amplified the move, turning a regional supply shock into a global price surge. On Thursday, the Fed raised interest rates by 0.25%, bringing the policy rate to a range of 3.75% to 4%. Goldman Sachs and Morgan Stanley expect another 0.25% rate hike in October. Other central banks are also tightening policy, with the European Central Bank having raised rates recently and the Bank of Japan expected to follow suit on Friday.
Goldman Sachs Group Inc
Morgan Stanley
JPMorgan Chase & Co