US Diesel Prices Hit Record High Amid Iran War

Diesel prices across the United States have surged to a record average of $5.85 per gallon, according to the American Automobile Association (AAA), adding to mounting pressure on farmers, transport operators and consumers.

The latest price represents an increase of more than $2 per gallon over the past year. AAA data shows the national average stood at about $3.71 per gallon 12 months ago.

Friday's average of $5.85 was the highest recorded since AAA began tracking diesel prices in the 1970s.

The sharp increase is particularly significant for the US agricultural sector, where diesel is essential for operating tractors, harvesters and other farm machinery. The fuel is also widely used by trucks transporting food and other goods from farms and distribution centres to supermarkets.

Farmers are facing additional cost pressures from rising fertiliser prices, with higher production and transportation expenses increasingly flowing through to consumers.

The Independent Grocers Alliance estimates that fuel-related expenses can represent between 15 and 30 percent of the total cost of some food products, highlighting the potential impact of sustained energy price increases on grocery bills.

Fuel prices have risen sharply since the conflict involving Iran began in February. Tehran subsequently blocked the strategically important Strait of Hormuz and disrupted oil and gas exports through the region.

The strait is a critical global energy shipping route, and disruptions to supplies have pushed international oil markets higher.

Global crude prices have remained elevated since the conflict began and climbed further this week following an escalation in attacks between the United States and Iran.

The continuing rise in energy costs is increasing concerns about broader inflationary pressures across the US economy, particularly as expensive fuel raises the cost of producing and transporting food and other essential goods.

With diesel prices now at unprecedented levels, businesses and consumers are facing the prospect of further increases if disruption to global energy supplies continues.