Diesel Hits Record $5.85 as Iran Conflict Disrupts Supplies

US drivers now pay a national average of $5.85 per gallon for diesel, the highest figure on record according to AAA data released Friday. The increase from $3.76 before the conflict began at the end of February has raised freight costs that move produce, meat, clothing, and other goods, with some retailers adding surcharges on packages and expecting further shelf-price pressure. Diesel powers most commercial trucks, trains, farm equipment, and construction vehicles, so sustained high prices transmit directly into logistics expenses that account for 15 to 30 percent of food costs, according to the Independent Grocers Alliance.

The price surge coincides with a six-month conflict involving the United States, Israel, and Iran. Outlets report that Iranian actions have restricted tanker traffic through the Strait of Hormuz, through which a fifth of global oil moves, pushing Brent crude above $95 a barrel from roughly $70 before the fighting. Gasoline has also risen, reaching an average of $4.15 per gallon compared with $3.20 a year earlier. Western states show the largest increases, with Washington at $6.81, reflecting tax differences and distance from domestic refineries.

President Trump has announced an oil-development agreement with Venezuela that includes 17 fields holding 65 billion barrels and more than $100 billion in investment, with the US retaining 55 percent of a joint venture. Reuters/Ipsos polling cited in coverage shows his approval rating at 33 percent and 31 percent approval of the conflict ahead of November midterms. Earlier hopes for de-escalation produced a temporary price dip this summer before renewed fighting pushed costs higher again.

Historical comparisons place the current diesel average above the 2022 peak of nearly $5.82 when adjusted for inflation to 2026 dollars. Experts note that contracts are repricing and fuel surcharges are expanding, moving more costs to consumers over time, while alternative supply routes remain limited for many importers in Africa and Asia.