Diesel price hits all-time high in US amid Iran war woes

What the report says

U.S. diesel prices have climbed to a record national average of $5.85 per gallon, according to the American Automobile Association, as fuel markets remain unsettled by the war involving Iran and disruption concerns around the Strait of Hormuz. Al Jazeera reported that the previous diesel peak was set in June 2022 after Russia’s invasion of Ukraine.

The article said the latest increase could raise transportation and production costs across the economy because diesel is widely used for trucks, buses, trains and heavy equipment. It also noted that the new record comes weeks before November’s congressional midterm elections, when inflation and the cost of living are expected to be major political issues.

Gasoline prices have also moved higher. Al Jazeera said the U.S. national average reached $4.14 a gallon ahead of the Labor Day weekend, marking a record for that time of year. AAA said travelers were facing the highest holiday-weekend prices ever for the period and linked the rise to ongoing volatility in the Strait of Hormuz and crude prices in the $90-a-barrel range.

The report placed the fuel spike in the context of the conflict between the U.S., Israel and Iran, with Washington officials saying they now have control over the waterway while Tehran has rejected that claim. Al Jazeera also noted that verifying traffic through the strait is difficult because some tankers turn off transponders, and that suspected attacks on ships have continued.