And it could get worse: Europe struggles with record fuel prices

European diesel prices hit a record 2.23 euros per liter this week, about $9.63 a gallon, driven by the closure of the Strait of Hormuz, Ukrainian drone strikes on Russian refineries and a Houthi blockade affecting Saudi tanker traffic through Bab el-Mandeb. Drivers are paying an extra $231 million a day on diesel across the EU, which imports nearly all its oil and 85% of its natural gas.

Germany cut fuel taxes at a cost of $2.85 billion in lost revenue, joining Spain, Italy, Romania, Portugal and Belgium in similar moves, while EU nations have also drawn down strategic oil reserves. Gas storage sits at only 69% full heading into colder months, well below the usual 85%.

France is sending troops and air defense systems to protect Saudi oil infrastructure at Yanbu, and Britain is providing air-to-air refueling support, as reports surface that the U.S. is weighing a 90-day diesel export ban the EU has warned would hurt both sides. Meanwhile fishermen have blockaded French ports and calls are growing to revive the 2018 yellow vest protests.

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