Record-high diesel prices caused by ongoing conflict in the Middle East could continue to pressure US supply chains heading into the November midterm elections, and policymakers have few options to blunt the impact on businesses.
Diesel is an ever-present cost for almost anyone who transports food or goods in bulk, powering the freight trains and long-haul trucks that underpin global logistics systems. It also fuels most large farm equipment, meaning prolonged periods of high prices can pressure farmers and ultimately influence food prices.
Expensive diesel is “rippling up and down the supply chain right now,” said GasBuddy head of petroleum ...