Diesel prices in the US and EU are spiking, according to a new report in Bloomberg, exacerbating inflationary pressures and raising the risks of a global recession.

Europe’s benchmark diesel was approaching $180 per barrel earlier in the week, as US diesel broke past $190 per barrel in California, and passed $170 in New York Harbor. The spike in diesel prices will be sure to push inflation higher, especially going into the heating season, as it increases the risk of supply disruptions, particularly in the EU, where an embargo on all Russian oil and petrochemical products is set to take effect in February of 2023.

Mark Williams, research director for short term oils at WoodMackenzie said in an interview with Bloomberg, “Higher diesel prices have the potential to create even stronger inflationary pressures, especially if the current price spike is sustained, adding significant downside risk to demand and increasing the chances of a global recession.”

In Europe the problem is being exacerbated by strikes at French refineries, which have already stopped all new fuel deliveries and set off shortages. One in three French fuel stations have reported they are already short on one or more fuels. French authorities warned workers Tuesday that the government was preparing to intervene if they were unable to come to an agreement with their management teams.

Analysts had warned one month ago that the pending embargo on Russian fuel supplies would push diesel prices up and risk the onset of shortages across the EU. Presently over one third of Europe’s fuel supply comes from Russia. Once the ban takes effect, Europe will have to find a way to either replace that third of its fuel supplies with domestic refining, and purchases at vastly elevated prices from suppliers such as the Unites States and Saudi Arabia, or it will have to find a way to do without the fuel.