Updated

Diesel prices have set a fresh record above $6 per gallon amid compounding fuel-supply disruptions tied to conflicts in Ukraine and Iran, with Bank of America strategists arguing diesel costs, not bond yields, pose the more immediate threat to the broader U.S. economy. The persistent squeeze is also testing private credit borrowers already burdened by high debt costs, as oil prices near $100 raise the risk that renewed inflation could push interest rates higher again. However, crude oil itself has shown volatility: after posting double-digit weekly gains above $100, both Brent and WTI fell sharply and dipped back below $100 on reports of planned diplomatic talks between Gulf states, even as some analysts argued the rally in WTI still 'has legs.' The mixed signals highlight uncertainty over whether fuel costs will keep climbing or ease, even as diesel prices remain at record highs and continue to squeeze consumers and businesses.