US diesel prices hit a record high of $5.85 on average as the Iran war
disrupts the flow of fuel
[September 04, 2026] By
WYATTE GRANTHAM-PHILIPS
CHICAGO (AP) — Diesel hit a new record price in the U.S. on Friday,
soaring to an average of $5.85 a gallon for the first time ever as the
six-month war with Iran disrupts the world’s flow of fuel.
Because diesel is used for many freight and delivery networks, higher
diesel prices mean higher transportation costs for a long list of
everyday goods. More expensive fuel is increasing bills for businesses
across sectors — some of which have already passed off costs to
consumers in the form of added fees on online orders and packages in the
mail. And shoppers may see more and more sticker shock trickle into
store shelves.
The increases could have political implications, with economic issues
likely to be top of mind for many voters in November’s midterm
elections.
One of the most immediate strains falls in the grocery aisle,
particularly with produce, meat and other perishable foods that need to
be hauled in and restocked frequently — or even harvested using
diesel-powered farm equipment. It can take time for all of those costs
to trickle down.
Still, experts warn that price hikes could mount the longer diesel
remains expensive. A range of other products are also transported by
diesel trucks, trains and boats, including clothing, cosmetics,
furniture and more.
The price for regular gasoline has also been going up, although not as
fast as the price of diesel. The average price was $4.15 a gallon,
compared with $3.20 at this time last year, according to AAA.
What’s driving the latest jump for diesel
Before the U.S. and Israel launched their war against Iran in late
February, the national average for a gallon of diesel was about $3.76 in
the U.S., per AAA. Prices quickly climbed as the cost of crude oil — the
main ingredient in diesel, as well as gasoline — soared amid supply
chain disruptions and production cuts across the Middle East, notably
with most tanker traffic bottlenecked in the key Strait of Hormuz.
Despite prices cooling some during hopes for peace earlier in the
summer, oil has now renewed its climb as fighting once more escalates
between the U.S. and Iran. Brent crude, the international standard, was
trading at more than $95 a barrel Friday, up from roughly $70 before the
war. Prices at the pump always follow closely behind.
The last time U.S. businesses and drivers saw sky-high fuel prices was
in June 2022, when diesel reached as high as nearly $5.82 a gallon on
average, months after the Ukraine war began and world leaders imposed
sanctions against Russia, a leading oil producer.
When adjusted for inflation, however, prices have been higher in the
past. Ahead of the 2008 financial crisis, for example, diesel peaked at
about $4.74 a gallon — equivalent to $7.20 in 2026, according to the
government’s latest data. And 2022’s record of nearly $5.82 would be
about $6.56 this year when accounting for inflation.
That doesn’t take the pain away from today’s steep prices, which are
already bringing ripple effects for the economy and wider costs of
living. Drivers are feeling the pain each time they fill up gasoline,
too.
The average $4.15 for a gallon of regular unleaded is up from $2.98
before the Iran war, although still well below the 2022 peak of nearly
$5.02 a gallon nationwide.
Diesel has been more expensive than gasoline for decades, and its price
has risen at a faster pace during recent energy crises. Some reasons
include more limited supply, less flexibility in demand, and diesel’s
position in global commerce overall. Individual households may find ways
to drive less when gas prices are high, for example, but there’s fewer
immediate substitutes for networks that rely on diesel to help produce
and haul goods worldwide.
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A nozzle pumps diesel into the fuel tank of bus in Orange, Calif.,
Tuesday, April 7, 2026. (AP Photo/Jae C. Hong, File)
 All eyes on food
Diesel is integral to every part of the food supply chain. It powers
farm equipment and fishing boats as well as the trains, cargo ships
and trucks that get food to grocery stores.
Fuel accounts for roughly 15% to 30% of the total cost of food,
according to the Independent Grocers Alliance, a grouping of 7,500
global supermarkets. Because of this, higher diesel costs often
result in more expensive food, although it can take a while for
energy shocks to wind their way through the supply chain.
Items that need to stay refrigerated while they’re transported are
often the first to see prices rise, according to David Ortega, a
professor of food economics and policy at Michigan State University.
In July, for example, overall U.S. grocery prices were up 2.7%
compared to last July, but seafood prices were up 7% and fresh fruit
prices were up 4.9%.
Ortega cautioned that there can be other factors at play when food
prices go up or down. Lettuce also faced higher transportation costs
in July, but a drop in demand due to the cyclospora outbreak caused
prices to fall.
Still, consumers could feel more of a squeeze the longer diesel
prices remain high.
“Early on, much of the cost increase gets absorbed along the supply
chain through existing freight contracts and retailer margins,”
Ortega said. “But as contracts reprice and fuel surcharges take
hold, more of that cost makes its way to the grocery store.”
More fuel shocks
Back in April, e-commerce giant Amazon rolled out a temporary 3.5%
fuel and logistics surcharge on some third-party sellers. And United
Parcel Service, FedEx and the United States Postal Service also
moved to add fees on some of the packages they ship earlier in the
war, citing rising operational costs for fuel overall.
Ajesh Kapoor, CEO and founder of trucking technology company SemiCab,
said trucking and transportations can adapt to rising diesel prices
— but at some point there is a limit.
“Diesel price has a very, very direct impact on everything that
moves on pretty much any mode,” Kapoor said.
The ramifications extend beyond the movement of consumer goods. Some
public transit buses and trains also run on diesel — and diesel
generators are often used for backup or emergency power, if not
central electricity sources in some remote parts of the world.
Experts warn that the consequences could continue to deepen —
particularly in countries in Africa and Asia, which rely more
heavily on imports from the Middle East and have already been hit
the hardest by energy shocks over the course of the war.
Neil Atkinson, energy analyst and senior fellow at the National
Center for Energy Analytics, said refined oil products like diesel
are becoming more expensive as supplies get stretched.
“This is gradually becoming a major crisis because A) the prices
themselves are very high — but the physical stocks of these products
are dwindling,” he said in a weekly briefing with maritime data firm
Lloyd’s List Intelligence, pointing to the strain on the global
refining system. “This cannot go on forever.”
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Associated Press writers Dee-Ann Durbin in Detroit and Mae Anderson
in New York contributed to this report.
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