Middle East conflict threatens supply, European aviation fuel prices skyrocket.

The war between Iran and Israel has pushed European diesel and aviation fuel prices to their highest level in 15 months, as traders fear disruptions to Middle Eastern exports. According to market pricing data from Argus, the premium of diesel over crude oil has soared by 60% since hostilities erupted last Friday, while the premium of aviation fuel has risen by 45%. This reflects concerns that any disruptions to transportation from the Gulf region could severely tighten supplies before the summer tourist season. The Gulf region is a major source of fuel for Europe.