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Diesel and gas price surge could lift European rates

By Drooid · Sep 12, 2026, 2:22 PM UTC · How we work

Summary

Lagarde Warns Diesel Inflation

ECB President Christine Lagarde warned that soaring diesel and gas prices could raise European interest rates.
Bank of England Governor Andrew Bailey told Parliament rising crack spreads add inflation pressure.
Diesel futures have risen above $200 a barrel, with some consumers paying over $300.
Ukraine attacks have cut Russian diesel exports to a trickle, lowering global supply.
Saudi Arabia closed its East-West pipeline after Houthi attacks, limiting an alternative route.

Summary

Trump Pledges $5k

President Donald Trump pledged $5,000 for every adult if Republicans keep House majority.
Analysts say the plan would require congressional approval and could increase inflationary pressure.
Treasury Secretary Scott Bessent accelerated Treasury bond buybacks to curb long-term interest-rate rises.
The 10-year Treasury yield reached a near three-year high of 4.9%.
Federal Reserve (Fed) split as Chair Kevin Warsh backs a hike while Governor Christopher Waller prefers holding rates if cools.

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Lagarde Warns Diesel Inflation

ECB President Christine Lagarde warned that soaring diesel and gas prices could raise European interest rates.
Bank of England Governor Andrew Bailey told Parliament rising crack spreads add inflation pressure.
Diesel futures have risen above $200 a barrel, with some consumers paying over $300.
Ukraine attacks have cut Russian diesel exports to a trickle, lowering global supply.
Saudi Arabia closed its East-West pipeline after Houthi attacks, limiting an alternative route.

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