U.S. diesel prices hit record high as bitcoin and gold struggle — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- U.S. diesel prices hit a record $6.29 a gallon this week, up nearly 80% year-to-date, driven by Middle East tensions around the U.S.–Israeli conflict with Iran and tight global refinery capacity meeting strong freight and industrial demand.
- The Federal Reserve is set to raise rates 25 basis points on Thursday, lifting the benchmark to the 3.75%–4% range, with Goldman Sachs and Morgan Stanley both expecting another 25 bps hike in October.
- The European Central Bank recently raised rates and the Bank of Japan is expected to follow on Friday, as central banks globally tighten policy into the same oil supply shock.
- JPMorgan warned that higher diesel prices feed into inflation first through business costs, then potentially into consumer prices depending on pass-through and demand.
- Bitcoin and gold face a headwind from record diesel and tighter policy, with the article noting that historically higher borrowing costs have weighed on bitcoin's market value, as seen during the 2022 Fed tightening cycle.
Why it matters: Central banks are tightening monetary policy into an oil supply shock that rate hikes cannot fix, with diesel up 80% YTD and JPMorgan warning that higher diesel feeds inflation through business costs. American consumers absorb higher borrowing costs while the root cause — Middle East-driven fuel disruptions — goes unaddressed by monetary tools.
Ask SkimNews
