European diesel prices rallied for a fifth straight session, driven by mounting anxiety that critical Middle East shipping lanes could be choked off. The conflict between Israel and Iran has raised alarm bells across the EU, which has become increasingly dependent on fuel shipments transiting the Strait of Hormuz since losing access to Russian supplies. 

"Supply-security fears are driving the surge in European diesel prices," Eugene Lindell, head of refined products at energy consultancy FGE NexantECA, told Bloomberg. "Many importers are rushing to restock now, in case a prolonged disruption occurs due to a potential blockade of the Strait of Hormuz," he added.

Here are the key points of strength in the European diesel market because of Hormuz blockade fears:

According to Bloomberg estimates, Europe imported approximately 850,000 barrels a day of diesel last year through the Strait of Hormuz. This critical maritime chokepoint leaves Europe highly vulnerable to regional instability and potential supply disruptions.

Europe has become more susceptible to disruptions in the Strait of Hormuz due to a combination of increased structural dependency, limited local refining capacity, and a post-Russia supply realignment:

Nice work, Brussels. The Strait of Hormuz stands as a massive single point of failure—any disruption in this critical chokepoint risks triggering a shockwave across European energy markets. Fresh data shows vessel traffic through the strait is already slowing (read more here).