The Iran-Israel conflict has sent European diesel and jet fuel prices to 15-month highs, with premiums surging 60% and 45% respectively. This is due to concerns about potential Middle East export disruptions, impacting Europe's heavy reliance on Gulf imports. While Brent crude also rose, the refined fuel price spike highlights Europe's vulnerability. The Strait of Hormuz's importance is emphasized, and the UK is particularly exposed. Higher prices will eventually affect consumers, though hedging strategies delay the impact. Gasoline margins, however, are weaker due to lower demand and the opening of a large Nigerian refinery.

Prepared by Christopher Adams and reviewed by editorial team.