Refined-products crunch: US and European diesel refining margins hit record highs

As tanker traffic through the Strait of Hormuz slowed to a near halt amid the US-Iran conflict, the supply squeeze has shifted from crude oil to refined products, unsettling markets on Wednesday, July 15, 2026. According to reports, the US diesel refining margin (crack spread) hit a record of about 64.5 dollars per barrel and the European diesel margin climbed above 60 dollars per barrel, the highest in several years.

Diesel prices are up roughly 58 percent year on year and jet fuel more than 100 percent, while US distillate inventories sit near a five-year low. The International Energy Agency has warned of a continuing shortage of diesel and other products. In contrast to the surge in products, Brent crude traded around 85 dollars the same day.