Oil prices surged in the initial hours of Sunday evening U.S. time trading, marking the first reaction to the U.S. and Israeli attacks on Iran and Iran's subsequent response. Notably, diesel prices rose at a faster pace than both crude oil and gasoline.

This trend is understandable, as heavier crude oils exported from countries like Iran and Saudi Arabia, and those potentially transiting the Strait of Hormuz, yield a greater proportion of distillates such as diesel when refined. This contrasts with lighter crude oils, which produce a higher percentage of gasoline or naphtha.

At a few minutes past 7 p.m. Eastern time, ultra-low sulfur diesel (ULSD) on the CME commodity exchange for the April contract, the nearest listed month, was up 24.55 cents per gallon to $2.8415 per gallon, an increase of 12.84%. It later traded above $2.90 per gallon.

The global crude benchmark Brent saw a rise of approximately 7.4% to $78.27 per barrel for the May contract, later trading above $82 per barrel.

RBOB gasoline, a semi-finished product serving as a proxy for gasoline trading, increased by 6.95%, or 15.67 cents per gallon, to $2.4104 per gallon for the April contract.

West Texas Intermediate, the U.S. crude benchmark, had climbed 7.28%, an increase of $4.88, to $71.90. This figure represents the April contract price.

A more than two-year high is within reach.

If ULSD were to settle at $2.84 per gallon, it would mark the highest CME settlement since February 13, 2024, when it closed at $2.8959 per gallon. For Brent, a settlement above $78 would also be significant.