Strait of Hormuz closure triggers US diesel supply shock, regional price divergence

The closure of the Strait of Hormuz is disrupting global distillate fuel oil supply, with US states facing varying impacts on diesel availability and prices. The Atlantic Council analysis identifies states most exposed to supply chain disruptions and price spikes, though the extent of the shock depends on the duration of the closure and alternative supply routes. This matters because diesel price divergence across US states could affect inflation, transportation costs, and regional economic activity.