Hormuz tensions push diesel cracks to extremes, NJ refinery labor dispute erupts

Diesel is doing its best impression of a rocket again, and this time it's dragging crude, cracks, and your heating bill along for the ride. Meanwhile, a labor standoff just hit a key East Coast refinery — because apparently fuel markets needed one more variable.

Crude and diesel both surged to five-month highs as Iranian attacks on shipping in the Strait of Hormuz and Houthi threats to Saudi infrastructure rattled markets, with diesel cracks near $111/bbl reflecting acute distillate tightness. On the policy front, Trump confirmed a diesel-focused deal with Russia tied to sanctions relief, while the administration also unveiled an $8B biofuel relief program for the 2026 crop year. Operationally, Phillips 66's Bayway refinery and Linden terminal saw union workers locked out after contract expiration, adding a domestic supply-chain risk just as refiners like Citgo report surging margins.