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Diesel spikes as fighting grows
Diesel prices in the United States hit an all-time record of $5.85 a gallon on Friday as the six-month conflict with Iran disrupted the flow of fuel.
“Diesel prices soared to an all-time record of $5.85 a gallon”
Quartz said the previous diesel record of $5.81 a gallon was set in June 2022, and it reported that diesel averaged $3.76 a gallon before the war began in late February.
ABC7 Los Angeles said the Iran war has disrupted the world’s flow of fuel and that higher diesel prices feed into transportation costs for everyday goods.
In Washington, Vice President JD Vance told reporters he “wouldn’t call it a war,” while the White House pushed back on the conflict being described as a war even as attacks between the U.S. and Iran increased this week.
CBS News reported that traffic through the Strait of Hormuz remained well below pre-war levels, with 102 ships transiting the waterway last week compared with 126 the week before.
Vance downplays, Iran counters
At a White House press briefing, AP reported that JD Vance rejected the word “war,” saying, “I wouldn’t call it a war,” and he also said, “Right now, there is no active shooting.”
AP said Vance steered clear of predicting that the 6-month-old conflict would be over by November’s midterm elections and rejected “artificial timelines” when asked when the fighting could end.
CBS News quoted Vance telling reporters that “gas, frankly, could have been much, much higher were it not for our efforts” in the Iran war, which he said he “wouldn’t call” a war.
On the other side, CBS News said Iranian Army spokesman Brig. Gen. Mohammad Akrami-Nia argued Friday that the U.S. and Israel failed to achieve their primary objectives, declaring, “The enemy had IRNA.”
CBS News also said Fatemeh Mohajerani acknowledged “economic pressure on the people” and shortages tied to U.S. “severe sanctions,” while Iran’s Central Bank Governor Abdolnaser Hemmati said the bank would intervene in the foreign currency exchange market “in a timely and forceful manner” when necessary.
Markets, shipping, and shortages
Quartz reported that the war prompted Iran to effectively close the Strait of Hormuz, through which about a fifth of the world's oil normally moves, cutting global crude supplies and straining refinery output across the Middle East.
“Gasoline prices also rose, reaching a national average of $4.15 a gallon”
It said gasoline prices also rose, reaching a national average of $4.15 a gallon on Friday, up nearly 40% since the start of the war, according to AAA.
CBS News said Lloyd's reported 102 ships transited the waterway last week, compared with 126 the week before, and it contrasted that with pre-war levels of at least 130 tankers daily.
In Iran, CBS News reported that Fatemeh Mohajerani said delays in completing infrastructure projects “should not be attributed to the inefficiency of managers” because “the severe sanctions have affected the process of securing resources and implementing projects.”
AP said Vance argued the U.S. had a “responsibility” to carry out this week’s strikes because Iran continued to target commercial vessels passing through the Strait of Hormuz, even as Brent crude hovered above $95 per barrel Thursday.