The price of diesel in the United States has hit a new record, reaching an average of $5.85 per gallon for the first time, while the six-month-long conflict with Iran continues to heavily impact global fuel flows. This figure surpassed the previous high of $5.819 per gallon, recorded on June 17, 2022, following the Russian invasion of Ukraine.
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Since July 15, the average price of diesel has remained above $5 per gallon. Furthermore, 2026 is set to become the most expensive year for diesel in U.S. history, said Patrick De Haan, head of oil sector analysis at GasBuddy, on X.
Diesel prices have increased by 55% since the start of the war between the United States and Israel against Iran, which began on February 28; the rise has been driven by growing concerns about global supplies. Before the conflict, about 900,000 barrels per day of diesel and 350,000 barrels per day of jet fuel passed through the Gulf – volumes equal to about 10% and 20% of the global seaborne supply, respectively – according to cargo monitoring company Vortexa.
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Moreover, since diesel is essential for many freight transport and distribution networks, its price increase results in higher transportation costs for a wide range of everyday goods. The rising fuel cost is inflating expenses for companies across various sectors; some have already passed these costs onto consumers by applying surcharges on online orders and postal shipments. Consumers are also likely to start noticing increasingly evident price hikes on store shelves.
One of the most immediate impacts concerns the food sector, particularly regarding fruits and vegetables, meat, and other perishable goods that require frequent transport and restocking, or that are harvested using diesel-powered agricultural machinery. It may take some time before all these costs are reflected in final prices.
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