Because of the war in Iran, the cost has climbed past the record it reached
in 2022 after Russia’s full-scale invasion of Ukraine.
·
U.S. diesel
prices reached a record $5.85/gallon,
surpassing the previous peak of $5.82 reached during the 2022 Russia–Ukraine energy
crisis.
·
Diesel
prices have risen more than
55% since the Iran war began, significantly increasing operating
costs for businesses.
·
U.S. gasoline also climbed to $4.15/gallon, nearly 40% higher since the start
of the war.
·
Brent crude traded around $96/barrel, approximately
30% above its
pre-war level.
·
The Strait of Hormuz, through
which roughly one-fifth of
global oil supplies normally pass, has been effectively closed/disrupted,
restricting crude and fuel shipments.
·
Damage
to Middle Eastern refineries
has reduced the production of diesel, gasoline and other refined fuels.
·
Ukrainian
attacks on Russian refineries
have further tightened global fuel supplies, prompting Russia to suspend refined-fuel
exports until the end of September.
·
Global
refined-product prices are
rising faster than crude prices, reflecting an especially severe
shortage of refining capacity.
·
U.S. refiners
are increasing production to benefit from record “crack spreads”—the difference
between crude-oil and refined-fuel prices.
·
Higher
diesel costs are affecting freight,
agriculture, factories, construction and other diesel-dependent sectors,
with some businesses passing costs to consumers through fuel surcharges.
·
Analysts
warn that fuel prices may remain
elevated even if the war ends and crude prices decline, because
refined-product markets are particularly tight.
·
Key takeaway: The current energy shock is increasingly a
refined-fuel supply crisis,
not simply a crude-oil price problem, creating risks of higher transportation costs
and broader inflation.
[ABS News Service/04.09.2026]
Diesel fuel prices jumped to a record high on Friday (04.09.2026) in the United States, as
the war in Iran continued to restrict the supply of energy worldwide, further squeezing
businesses that rely on diesel to run their factories and equipment.
The national average
price of a gallon of diesel reached $5.85 per gallon, according to the AAA motor
club, up more than 55 percent since the war started. That surpassed the previous
peak, set four years ago during the global energy crunch caused by Russia’s full-scale
invasion of Ukraine.
Other refined petroleum
products, like gasoline and jet fuel, have also soared. Gasoline cost $4.15 a gallon
on Friday, on average, up nearly 40 percent since the war began, according to AAA.
Over the past six months,
“global prices of all main refined products have increased more than crude prices,”
analysts at Goldman Sachs wrote in a research note.
The price of Brent crude
oil, the international benchmark, traded at around $96 a barrel on Friday, up about
30 percent since the start of the war.
Diesel fuels are used
by many commercial vehicles, including farm equipment and freight trucks. Higher
fuel costs make it more expensive for business owners to run factories and ship
products. Some businesses have passed on the higher costs to customers through fuel surcharges, and UBS recently cited higher diesel prices as a growing risk for homebuilders.
Fuel costs began rising
after the United States and Israel began attacking Iran on Feb. 28. Tehran retaliated
by effectively closing the Strait of Hormuz, the narrow Persian Gulf passageway
through which about a fifth of the world’s oil and large amounts of related fuels
are normally transported.
The turmoil in the supply
of crude has spread to refineries, where oil is processed, or cracked, into fuels
like diesel and gasoline. Missile strikes have damaged refineries in the Middle
East.
In addition, Ukraine
has attacked and damaged many Russian refineries. That has forced Russia to ban the export of refined
fuels until the end of September.
“With little spare refining
capacity, meaningful relief requires a recovery in Persian Gulf and/or Russian flows,”
Warren Patterson, the head of commodities strategy at ING, wrote in a research note.
U.S. refineries are
producing more fuels to take advantage of the “crack spread,” or the difference
between the price of crude and refined petroleum products, which has reached record
highs, Mr. Patterson said. A widening spread has helped companies like Marathon
and Valero earn record profits.
Experts say the higher
fuel costs will linger even if the war in the Middle East is resolved and the price
of crude oil falls.
“The oil market remains
tight, but refined product markets are even tighter,” Mr. Patterson wrote.