The escalating conflict involving Iran has significantly constrained the flow of oil and refined‑fuel through the Strait of Hormuz, a major global energy chokepoint. Fresh produce, which relies heavily on truck transportation, is particularly affected by diesel fuel inflation. Elevated transportation costs are contributing to higher delivered costs for fresh fruits and vegetables.

• Diesel inventories were already limited prior to the conflict, causing diesel prices to rise faster than gasoline markets
• The diesel fuel national average surpassed $5.00 per gallon, the highest level since 2022
• West Coast prices are exceeding $6.00 per gallon; California is among the highest nationally, with markets over $7.00 per gallon in many areas
• Diesel represents roughly 20–25% of total trucking cost per mile, making carriers highly sensitive to fuel spikes
• Prices are expected to remain elevated until meaningful normalization of global oil flow occurs; no near‑term relief is expected
• Temporary fuel surcharges are in effect on most items and transportation lanes until oil prices ease

Please contact your Markon Account Manager for more information.

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