Farmers in the United Kingdom and the United States are dealing with a sharp rise in the cost of fuel needed to run their vehicles and machinery, following a surge in diesel prices. This increase has been driven by renewed tensions between the U.S. and Iran, which have pushed up the price of crude oil. Additionally, Russia has extended a ban on diesel exports, adding further pressure to global fuel markets. Alex Harrison, a fuel buyer at Fram Farmers, a not-for-profit farmer-owned co-operative, said that the recent intensification of hostilities in the Middle East has caused fuel prices to rise even more. Since Monday, the price of all fuels has gone up by between 10p and 14p per litre, representing a 10% increase in the cost of red diesel, which is currently priced at around £1.10 per litre. In the UK, the average price of diesel for motorists reached 183.5p per litre on Thursday, up from 164.5p in mid-July, according to government data. This volatility has made it difficult for farmers to decide how much fuel to buy and when. Many are seeking guidance from Fram Farmers, which represents over 1,400 farm businesses across the UK. Although the peak demand for red diesel and other fuels during the harvest season has passed, some farmers still buy more fuel at this time of year to prepare their land for winter. The recent spike in prices has caught many by surprise, especially given the large increase and the timing of the year, Harrison noted. Farmers are now trying to manage their cash flow by adjusting their buying habits. Since the outbreak of war in Iran, which has sent oil prices soaring, Fram Farmers' members have changed their purchasing patterns. Harrison explained that many are now ordering in smaller amounts more frequently, as they attempt to reduce their risk. This rise in diesel prices is occurring amid a global shortage of refining capacity. Russia, which normally supplies about 10% of the world’s diesel, has been hit by Ukrainian drone attacks on its refineries in August, leading to the extension of the export ban. This situation has been worsened by the overall increase in crude oil prices, with the international benchmark Brent crude trading at nearly $97 a barrel on Thursday, its highest level in about six weeks. In the U.S., diesel prices have reached their highest level in about four years, with the average price reaching $5.78 a gallon on Thursday, according to the AAA motoring organisation. This represents a 54% increase since the war began. Diesel prices last reached this level in 2022, following Russia’s full-scale invasion of Ukraine. Higher fuel costs will also impact small businesses and larger companies that rely on vehicle fleets, such as delivery and construction firms. In the UK, the price of paraffin, or heating oil, used widely on farms to heat buildings, has also increased significantly. At around £1 per litre, this is much higher than the 60p per litre seen before the war in Iran. This is particularly challenging for rural households not connected to the gas network, who typically start preparing for winter by filling their tanks.