Record diesel prices pressure transport stocks and raise U.S. inflation worries

Diesel prices across the United States climbed to $6.51 per gallon, the highest on record, according to AAA, triggering a sell-off in transport-related equities. J.B. Hunt's stock dropped more than 13% after finance chief Brad Delco warned that fuel costs would cut quarterly earnings by 5% to 10%, describing the price swings as unprecedented.

The Dow Jones Transportation Average slid over 2% on the same day, while the Energy Information Administration logged a national on-highway diesel average of $6.285 per gallon, up $32 from the previous week and $2.55 higher than a year ago. The surge stems from reduced tanker traffic through the Strait of Hormuz due to U.S.-Iran tensions and from Ukrainian drone strikes that have crippled Russian refining capacity, prompting Moscow to ban diesel exports.

Analysts note that higher diesel will eventually feed into freight rates, food prices and home-heating costs, with some officials warning of a potential 31% rise in heating-oil bills this winter. Lawmakers, including Senator Chuck Grassley, have urged President Donald Trump to consider an export embargo, while Senate leaders remain cautious about the policy's effectiveness.