Oil and diesel prices hit record highs after Saudi pipeline shutdown and delayed Hormuz talks

Brent crude climbed to $108 a barrel on Monday and U.S. crude reached $103, as Saudi Arabia shut the East-West pipeline for precautionary reasons following attacks on the line. The shutdown came amid a stalemate in the Strait of Hormuz, where vessel traffic has fallen to double-digit levels.

Oman’s foreign minister said on X that a meeting between Iran and Gulf states on Hormuz was delayed “in the interests of consensus,” after Tehran postponed it at Riyadh’s request. MarineTraffic data showed only 14 ships passed through the strait on Sunday, down from nine on Thursday.

U.S. gasoline prices rose to $4.31 per gallon, while diesel hit a record $6.23 per gallon, according to AAA. KPMG chief economist Diane Swonk warned that “the cost of diesel gets into just about everything,” and said the surge could create an “inflationary problem” for months.

President Donald Trump, speaking at the Irish Open, said he had asked Ukrainian President Volodymyr Zelenskyy to refrain from targeting Russian diesel facilities, arguing that attacks on Russian refineries have led Moscow to ban diesel exports, tightening global markets.

ING commodities analysts noted that Russia’s diesel export ban, set to expire at the end of September, could be extended, and that diesel prices have risen about 30% since late June, up 75% year-to-date.