Pricey Diesel Hits Businesses, Vexes Policymakers: Explained

High diesel prices resulting from conflict in the Middle East and confusion over a vital trade route could complicate US supply chains all year, and policymakers have few options to blunt the impact on businesses.

Diesel is an ever-present cost for almost anyone who transports food and goods. It powers the long-haul trucks and freight trains that move those goods. And it fuels most large farm equipment.

Expensive diesel “hits just about every part of the economy that you can imagine,” said Diane Swonk, chief economist at KPMG.

Global energy markets have whipsawed since the US and Israel attacked Iran ...