A severe energy squeeze has sent US diesel prices to an all-time high of $5.85 per gallon as Middle East hostilities continue to disrupt key maritime supply lines. Meanwhile, Russia faces a sharp decline in monthly oil revenues, and European natural gas benchmarks are heading for a fourth consecutive weekly gain.
Global market
The average US diesel price set a new all-time high at $5.85 per gallon, according to GasBuddy analyst Patrick De Haan, surpassing the previous record of $5.819 from June 2022. This surge comes as WTI crude trades at $91.80 per barrel, and European TTF gas prices are set for a 7% weekly gain due to the escalation of the Middle East conflict. Meanwhile, European Commission spokesperson Anna-Kaisa Itkonen announced that Brussels is ready to reduce underground gas storage targets from 90% to 75% for lagging nations. Additionally, the Baltic Dry Index jumped 140 points to 3628, and Argentina’s President Javier Milei threatened sanctions on oil firms drilling near the Falkland Islands.
Russia & CIS
Russia’s net oil revenues plunged by 22% year-over-year in August to 326.2 billion rubles ($3.76 billion), their lowest level since February, as Urals crude fell to $59 per barrel. Concurrently, Russian Direct Investment Fund CEO Kirill Dmitriev linked German industrial plant closures to Berlin’s refusal of Russian gas. Locally, Sochi Mayor Andrey Proshunin reported that a fire at a domestic fuel depot caused by Ukrainian drone attacks has been extinguished, while Krasnodar Governor Veniamin Kondratyev ordered accelerated deliveries to prevent shortages. Gazprom CEO Alexey Miller also announced that gas storage reserves will reach a record in 2026, with supplies to Central Asia up by 70%.
Armenia
Armenia’s natural gas consumption grew in the first half of 2026, driven by rising household demand, despite a decline in use at compressed gas stations. The country’s retail petrol, diesel, and gas prices remain stable under EAEU treaties, which secure duty-free Russian fuel at fixed rates, shielding consumers from volatile international market price assessments. Meanwhile, regional tensions mount as Sputnik Armenia reported on critical Ukrainian air defense shortages, with Ukrainian presidential adviser Serhiy Beskrestnov warning citizens to stockpile fuel. Additionally, Kazakhstan’s ban on apple imports will not affect EAEU transit through its territory.