Spike in red diesel prices as Middle East conflict continues
Jenni Green 09 September 2026
Red diesel prices have soared into three-figure territory again, putting extra cost pressure on farmers and growers looking to run their machinery during the busy autumn period.
Two weeks ago, red diesel was ticking along at about 95-97p/litre – a level it has been at for much of the summer.
But last week it jumped to 105p/litre according to the Farmers Weekly average collected from farm suppliers across the country, and this week it was quoted at more than 107p/litre – up almost 70% on last year’s price.
This is despite the fact that in June, following pressure from the NFU, the Treasury cut duty on red diesel from 10.18p to 6.48p/litre, its lowest rate in 20 years.
The upturn reflects developments in the Middle East, with signs of the US-Iran conflict widening, including a recent attack by Houthi rebels based in Yemen on Saudi Arabian oilfields.
Brent crude oil prices soared to nearly $100/barrel (£74) this week, a level not seen since May.
With the Ukraine/Russia war also rumbling on and oil vessels being targeted in the Black Sea, the outlook remains volatile.
above 4pc, driving up prices on supermarket shelves and forcing the Bank of England to raise interest rates.
The crunch is already inflicting fresh pain on motorists. Diesel prices at British pumps are averaging almost 192p a litre, back to the highs of early April.
The diesel squeeze has been exacerbated by Ukrainian drone attacks on Russian refineries. Reuters reported on Tuesday that half of Russia’s top six diesel producers had significantly cut back or halted output in September.
Moscow recently extended its own diesel export ban until Sept 30.
Saudi Aramco will halt all crude deliveries to European refiners next month after a pipeline attack.
The East-West pipeline has been shut since September 10 and could take up to six weeks to repair.
Brent crude has swung between $104 and $108 a barrel this week on the disruption.
Saudi Aramco has informed at least two European oil refining customers that they will receive no crude deliveries next month, after an attack on the kingdom’s key pipeline to the Red Sea, Bloomberg reported citing people familiar with the matter.
European customers normally receive Saudi crude through term contracts, guaranteeing steady monthly supply.
The report said those deliveries under long-term contracts will not happen in October.
The decision applies to all European buyers, the people cited in the report said.
The pipeline at the center of the crisis
Saudi Arabia’s East-West pipeline, a 1,200-kilometer route carrying up to 7 million barrels a day from the kingdom’s eastern oil fields to the Red Sea port of Yanbu, has been shut since a September 10 drone attack damaged at least one pumping station.
Reuters reported on September 17, citing satellite imagery and industry sources, that three pumping stations were actually damaged, one more than initially assessed.
The pipeline had become Saudi Arabia’s critical alternative export route after Iranian attacks brought tanker traffic through the Strait of Hormuz to a near standstill.
Repair estimates range from a partial restart within days to full recovery taking five to six weeks, the report said.
Europe scrambles for alternatives
European refineries typically receive Saudi crude via Egypt’s Mediterranean port of Sidi Kerir, linked to the Red Sea by pipeline.
With that route now cut, refiners are racing to secure replacement barrels from the North Sea and elsewhere.
Poland’s Orlen, which relies on Saudi Arabia for roughly 40% of the crude feedstock across its three refineries, has issued more than ten tenders since last Friday to secure alternative supplies.
At least three European refiners have already had September cargoes canceled or delayed as far out as November, according to market sources cited by Argus, with two more expected to receive similar notices.
European OECD countries imported 577,000 barrels a day of crude from Saudi Arabia in June, according to the International Energy Agency’s monthly Oil Market Report.
Oil prices swing on the outage
Brent crude climbed as high as $108 a barrel this week before easing to around $104.84 by Friday morning, as Saudi Arabia moved to reroute some exports through the Strait of Hormuz to offset the pipeline outage.
WTI crude traded near $103.
Physical crude cargoes in Europe told a starker story, with some prices reported above $130 a barrel and North Sea Forties crude reaching $136.75, a sign of how tight the actual deliverable market has become even as futures prices moved more modestly.
Consultancy Rapidan Energy expects Saudi crude exports to fall by 400,000 barrels a day this month because of the outage, partly offset by higher flows through Hormuz.
“Risk remains skewed toward a larger disruption if the pipeline outage extends past September or Iran, the Houthis, or other proxy groups escalate attacks,” the firm told clients in a note.
The disruption adds to a broader energy shock already unfolding this month, as elevated oil prices feed into inflation concerns that helped push the Federal Reserve to raise interest rates for the first time since 2023.
‘We make the world go ‘round. When we stop, it stops’: Truck drivers speak out as diesel prices reach record highs
Truck drivers say cost of diesel is having a negative impact on their work
Owner-operators say fuel costs cut into pay
Yahathan, a truck driver for 28 years, said diesel prices are having a negative impact on his work because he travels long distances, sometimes for months at a time.
“We’re going to automatically spend over $2,000 a week on fuel,” Yahathan said. “Because in order to make money, the truck has to keep moving, has to keep rolling. So that’s using up fuel every time you roll.”
Yahathan said speed affects how much fuel is used, but drivers who need to reach a destination quickly can spend $70,000 or more. He said he just finished a load and was waiting to hear from a broker about his next one, likely toward Chicago.
Yahathan, who is an owner-operator, said the rising prices are affecting his business.
“I feel that diesel for truck drivers, you know, it shouldn’t go up at a high rate because we make the world go ‘round,” Yahathan said. “Now, without us, no companies wouldn’t even exist.”
Yahathan said company drivers are not responsible for fuel costs, but owner-operators like himself have to manage fuel spending closely to sustain their business. He said the increase is causing him to cut down on loads because of the distances he has to travel. He said he pays for fuel out-of-pocket because he owns his truck.
Retired, living in the Scottish Borders after living most of my life in cities in England. I can now indulge my interest in all aspects of living close to nature in a wild landscape. I live on what was once the Iapetus Ocean which took millions of years to travel from the Southern Hemisphere to here in the Northern Hemisphere. That set me thinking and questioning and seeking answers.
In 1998 I co-wrote Millennium Countdown (US)/ A Business Guide to the Year 2000 (UK) see https://www.abebooks.co.uk/products/isbn/9780749427917
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