The United States government advised Vladimir Zelensky, the President of Ukraine, to cease airstrikes against Russian fuel facilities. Donald Trump, the President of the United States, stated during his official visit to Ireland on Sunday that these attacks have led to a reduction in global fuel supply, making the situation more difficult for everyone.
Consequences of the War in Iran and Fuel Prices
Mr. Trump continued to say that Ukraine's attacks on Russian fuel infrastructure have negative impacts on the global fuel market. He pointed to the rise in diesel prices in the United States, which has reached its highest level in history. On Friday, diesel prices exceeded $6 per gallon, while crude oil prices also rose to over $108 per barrel.
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Market analysts attribute the rise in diesel prices mainly to the war in the Middle East and also to issues arising from conflicts in the Strait of Hormuz. This region previously accounted for about one-fifth of the world's oil supply. Additionally, the East-to-West pipeline in Saudi Arabia, which is one of the key routes for the country's oil exports, has been halted due to a drone attack.
Economic Impacts of Attacks on Refineries
The increase in diesel prices in the United States is due to the effects of wars on the efficiency of refineries in the Middle East and Russia. According to a report from CNN, refineries have currently reached maximum diesel production capacity, and there is no possibility for further production. This will mean increased transportation costs for businesses, which will ultimately be passed on to consumers.
Meanwhile, Ukraine claims that attacks on Russian refineries are essential to cut off Moscow's funding and reduce domestic support for the war. Since the start of the war in 2022, the country has attacked Russian oil facilities more than 300 times.
A spokesperson for the Ukrainian army announced that in the hours before Trump's statements, Ukrainian forces attacked an oil refinery in the Republic of Tatarstan, Russia. Tatarstan officials reported the deaths of two civilians and injuries to others in this attack.
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