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Diesel hits a new all-time record as Iran conflict lifts fuel costs
AAA said the national average for diesel reached $5.85 per gallon on Sept. 4, up from the June 2022 peak.
Diesel prices surged to a new all-time high on Sept. 4, surpassing the previous record set in June 2022, according to Yahoo Finance. AAA reported the national average price per gallon at $5.85, which was $0.04 higher than the prior peak of $5.81 in June 2022.
Yahoo Finance pointed to geopolitical conflict as a key driver behind both the 2022 and 2026 price surges, citing Russia's invasion of Ukraine for the earlier spike and the ongoing conflict with Iran for the most recent run-up. It said diesel prices had stood at $3.76 per gallon on the eve of the Iran war, and that the later increase reflected factors beyond restrictions on fuel flows through the Strait of Hormuz.
The outlet said the latest jump was also linked to tighter diesel exports from Asian refineries, disruptions at Russian refineries following a recent attack by Ukraine, and a shift by U.S. refineries toward producing more jet fuel in response to higher prices. It noted diesel’s role in powering cargo ships, freight trains, and long-haul semi-trucks, as well as farm equipment used in producing much of the domestic food supply.
Yahoo Finance added that the diesel record coincided with higher prices across related fuels, including Brent crude at about $94 per barrel on the same day and gasoline averaging $4.14 per gallon, a record for that time of year. It warned that while the added cost of fuel may have limited impact on any single item, the cumulative effect could be significant.
Latest closeWTI crude $97.01 ▲4.3%|Brent $102.05 ▲4.2%|Gasoline (RBOB) $3.062 ▼5.8%