EUROPEAN DIESEL FUTURES JUMP TO $200 PER BARREL AS IRAN WAR SQUEEZES SUPPLY

Thu 02 April 2026:

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.

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Stocks fall in China and Hong Kong

The benchmark Shanghai Composite index SSEC fell 0.53 percent by midday, while China’s blue-chip CSI300 Index CSI300 lost 0.74 percent, reports Reuters.

The news agency said in Hong Kong the main Hang Seng Index HSI fell 1.1 percent with shares in technology firm HSTECH down 2.2 percent.

As we’ve been reporting, stock markets in Japan and South Korea are also down while oil prices have climbed more than $5 a barrel following President Donald Trump’s pledge to continue hitting Iran hard for the next two to three weeks.

Asian stocks slide as Trump threatens to bomb Iran back to Stone Ages

By Patrick Fok Reporting from Singapore

Trump’s remarks really took the wind out of any optimism about any possible resolution to the crisis.

MSCI’s broadest share index of Asian Pacific shares fell about three-quarters of a percent in early trade after President Trump talked about the possibility of blowing Iran back to the “Stone Ages”.

Prior to that, Iran had taken the unusual step of reaching out to the US directly, issuing a letter, saying to Americans that Iran had no enmity with the US and that it was acting in self-defence. That provided Washington with an off-ramp, which had helped lift Wall Street stocks overnight.

Instead, we’re seeing investors take risk back off the table now, and a lot of uncertainty is returning to markets. Notably, energy prices are rising once again. Brent Crude is currently trading at about $104 a barrel, after previously dipping below the psychologically significant level of $100 a barrel.

So, once again, we’re seeing a lot of uncertainty.

I think it’s important to note also that from what we’ve seen over the last couple of days – particularly with that record rise that you saw in Asian markets for the year yesterday – that if there is any resolution to the price, we are going to see markets bounce back very quickly indeed.

Japan’s Nikkei reverses gains after Trump’s speech

Japan’s Nikkei share average has fallen, reversing earlier gains, after Trump failed to provide a clear sign for the end of the war on Iran.

The Nikkei was down 1.6 percent at 52,867 as of 02:16 GMT, after rising as much as 0.97 percent earlier in the session, according to the Reuters news agency.

The broader Topix also erased gains, falling 0.98 percent to 3,635.18.

The index had rallied this week on hopes for a de-escalation in the war, after logging its worst month since the 2008 global financial crisis in March.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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