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00:00:30.000U.S. diesel prices soar to almost $5 as Iran war pinches global supply.
00:00:37.020Rob, if you can pull up the AAA gas prices for the last 30 days while I'm reading this article, that'd be great.
00:00:43.000U.S. diesel prices have jumped to more than a third, more than a third over the past month to almost $5 a gallon.
00:00:48.220As the war in Iran, average diesel prices at the pump $4.99 on Monday, a 37% increase a month ago.
00:00:58.760As the blockage of Strait of Hormuz chokes energy supplies, it marks the highest price for diesel, a fuel that is vital for industry.
00:01:05.660Since the aftermath of Russia's full-scale invasion of Ukraine in 2022, diesel costs rocket up and float back down, said Ed Herz, an energy economist at the University of Houston.
00:01:15.280The only thing that Donald Trump's administration can do is finish this war.
00:01:20.620The diesel surge is pushing up costs for motorists and farmers,
00:01:25.820threatening to trigger spiraling costs for consumers across the world's largest economy
00:01:30.280at a time when the president is battling an affordability crisis.
00:02:10.060You and I are making products at a company. Oh, diesel is up for a week. Let's raise the price.
00:02:14.920You go, wait a minute. Wait a minute. That's what if our competitor doesn't? We could lose market share.
00:02:18.680Let's be more careful. So for the short run, you know, producers that are selling into retail are a little bit conservative, but not not forever.
00:02:27.540But right now, five dollar diesel is not good. That's increasing the cost on producers and three dollars and 80 gas,
00:04:29.180But the thing that's bugging me, though, is that everybody's saying, oh, the good thing is at least China's being hurt more than America's being hurt.
00:04:35.160But it's widely acknowledged that Iran's letting Chinese ships with Chinese oil go through the Strait of Hormuz right now to China.
00:04:43.640So China's actually not being hurt by this in the way that we are.
00:04:46.560And then Trump is saying it's OK. We produce more than enough oil domestically to supply ourselves for years and years and years.
00:04:52.440But not exactly the case because we built refineries to handle the heavy crude oil because we didn't know that we had all this light crude oil that we found in 2008.
00:05:02.300So we do produce the most oil in the world by far, but we could only refine like 10 percent of it because we don't have refineries that could refine the light crude that we have.
00:06:13.400Look, I mean, what this is doing, what the Strait of Hormuz conversation is doing is it's making you wonder how many other choke points are there in the world that can impact the economy, okay?
00:06:26.940And what leverage different people have.
00:06:29.160So we got a history lesson the last two weeks about Strait of Hormuz, right?
00:10:20.380So everybody right now is kind of sitting around saying what do we do next.
00:10:24.280But you know what's the other two that one of them we don't talk about a lot?
00:10:27.660One of them we know is the choke point is what?
00:10:30.800Taiwan with 90% of the semiconductors.
00:10:33.020We all know how much control they have and how everybody has ships around that area to protect Taiwan, Japan, U.S., you know, and then China's flying jets constantly to make sure no one's messing with that because they eventually want to find a way to have control over it.
00:10:46.820This is the last one that we have to talk about, and it's the Strait of Malacca.
00:10:52.340Rob, can you tap in the Strait of Malacca?
00:10:54.400Strait of Malacca is by far the most important straight to China.
00:11:00.320Nothing is more important than the Strait of Malacca.
00:11:02.920If you go to map, I'm trying to see which map to use that shows it.
00:11:08.120Just go to the, yeah, that's a good one, Rob.