Diesel price nears record high, as feds hold interest rates steady, in volatile market closing out July

Consumers continued paying higher fuel prices in the month of July as the war in Iran, now entering its sixth month, still hinders global fuel shipments.(CN) — Diesel prices rose again in the final week of July, as ongoing military conflicts in the Middle East continue to destabilize the global fuel market, marking the second-highest national average price ever recorded by the U.S. Energy Information Administration.Facing short supply due to geopolitical factors, diesel fuel surged this week to $5.34 a gallon, which is just about 50 cents below the American Automobile Association’s all-time record, notched four years ago at $5.816.With diesel prices currently over $1.50/gallon higher than one year ago, the International Energy Agency (IEA) forecasts that fuel prices will continue to rise before any recovery occurs.“Despite the significant reductions in demand for crude oil and refined products, the buffers in the system continue to erode at a record pace. Global observed oil stocks have declined by 3.8 million barrels per day on average since the start of the war, with a sizeable draw of 143 mb (-4.6 mb/d) in May, according to preliminary data,” the group wrote in a recent monthly report. “Further declines in the coming months could still take global oil stocks to historic lows before the market balance shifts to surplus towards the end of the year.”An international diesel shortage, exacerbated by Ukrainian attacks on Russian refineries and decreased Chinese refinery output, has kept prices rising over the past year.The United States and Israel’s war in Iran, now in its sixth month, halted most shipping through the Strait of Hormuz, a narrow waterway that previously served as a delivery route for a fifth of the world’s oil and natural gas.Crude oil prices traded sharply higher in July, with both Brent Crude and West Texas Intermediate benchmarks posting a monthly gain of around 20%.The geopolitical tensions affecting oil contributed to an overall volatile week for financial markets ending July 31, 2026, with gains bolstered by tech sector rebounds led by Amazon earnings, amid the economic uncertainties of U.S. President Donald Trump’s most recent foreign tariff measures.The tech giant Amazon touted this week a 20% year-over-year increase in net sales, with an operating income of $27.5 billion, up 43% year-over-year.Its cloud computing business, Amazon Web Services, saw net sales increase 37%—its fastest growth in 18 quarters—to a $169 billion annualized revenue run rate, with both its AI and chips businesses exceeding annual run rates of more than $25 billion.Amazon shares closed at $271.58 on Friday, spiking nearly 14 percent compared to one month earlier.Microsoft (NASDAQ: MSFT) shares jumped 15% Thursday after the technology giant issued stronger-than-expected revenue guidance for the current quarter, driven by continued growth in its cloud computing and artificial intelligence businesses.Microsoft closed Friday at $464.72, ending July up about 19%, or $74.23 a share.The Federal Reserve on Wednesday left its benchmark interest rate unchanged at 3.50% to 3.75% for a fifth consecutive meeting, as expected.Inflation has remained above the central bank’s 2% target for more than five years.The war in Iran has clouded the economic outlook and pushed energy prices higher, adding to inflationary pressures and complicating the Federal Reserve’s policy decisions.President Trump’s ongoing campaign of assorted tariffs on foreign goods is also adding to inflation pressures.The Trump administration has imposed double-digit tariffs on more than 60 countries under a revised legal rationale allowing the president to levy import taxes and other sanctions against countries found to engage in “unjustifiable,” “unreasonable” or “discriminatory” trade practices.The tariffs announced last week took effect as temporary 10% global tariffs expired. Critics say the new duties are less about combating forced labor than about replacing the expired tariffs, which were themselves imposed after the Supreme Court struck down an earlier set of worldwide tariffs in February.Some products, including oil, gas and fertilizer, are exempt from the new tariffs. Products eligible for duty-free treatment under the U.S.-Mexico-Canada Agreement, the North American trade pact negotiated during Trump’s first term, are also exempt.On Wednesday, Trump fumed at the Supreme Court for striking down the tariffs.“Does anybody have any idea how much Money and Prestige the United States Supreme Court has cost our Nation with their negative Rulings on Birthright Citizenship and TARIFFS? The answer, TRILLIONS AND TRILLIONS OF DOLLARS,” the president wrote on his TruthSocial social media platform.**Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads