ISTANBUL

European diesel futures surged to their highest level since 2022 on Thursday as the Iran war tightened global fuel supplies and disrupted key trade flows.

The benchmark contract rose as much as 9.5% in London to $1,493.25 per ton, equivalent to more than $200 per barrel.

The rally comes as traffic through the Strait of Hormuz remains largely suspended, blocking shipments of refined products such as diesel, while reduced crude availability has forced some refiners to cut output.

The disruption has sent traders scrambling for alternative cargoes, with diesel shipments rerouted over longer distances to meet demand.

Europe is structurally short on diesel and typically relies on imports to meet part of its consumption.

Traders and analysts warn that if the strait remains closed, the region could face supply shortages within weeks, with similar pressure expected to build in Latin America.