Diesel Prices Hit All-Time High Above $6 Amid Global Supply Woes

The national average price of a gallon of diesel hit a record high on Friday, exceeding $6 for the first time as tensions in the Middle East continued to disrupt oil shipments.

Diesel powers much of the country’s trucking, freight, farming, and delivery networks, with higher fuel prices raising the cost of transporting everyday goods.

The national average price of diesel hit $6.06 a gallon on Sept. 11, according to the American Automobile Association (AAA), up from $5.98 the previous day and $5.85 a week earlier.

While the $6 level is largely a psychological milestone, it signals mounting pressure on businesses and consumers alike.

“Not every day are new all-time records set, and this will be a particularly painful one for the economy that may not even be immediately felt, but record diesel prices will impact every cargo, shipment, every delivery Americans are taking, and are likely to reignite inflation up and down the supply chain,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a statement.

Diesel prices could rise further, De Haan added, citing geopolitical tensions as the main driver.

Hormuz Shipping Remains Disrupted

Tensions have escalated in the Middle East, where the United States and Iran continue to vie for control of the Strait of Hormuz, a narrow waterway critical to global oil shipments.

In recent weeks, Washington has loosened Tehran’s grip on Hormuz while virtually shutting down Iran’s oil exports through a naval blockade. As of Sept. 10, American forces have redirected 96 commercial vessels to ensure what U.S. Central Command called “total compliance.”

Vessel transits at the Strait of Hormuz fell to seven on Thursday from 11 the previous day, according to preliminary ship-tracking data released ​Friday, well below the 10-day average of 15.

Before the Iran war began on Feb. 28, about 125 large commercial vessels typically passed through the strait each day. The waterway carried roughly one-fifth of global oil consumption and a similar share of global liquefied natural gas trade, according to the U.S. Energy Information Administration.

Oil flows through Hormuz remained “well below pre-war levels,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a commentary Friday. They said this underscores “how fragile the situation has become.”

Oil Holds Above $100

Crude prices eased in early trading Friday but remained on track to finish the week above $100 a barrel. Brent crude traded near $104 a barrel at about 7 a.m. on Sept. 11 after briefly topping $109 overnight, its highest level since May.

“Oil’s resilience reflects a market now repricing both the duration and severity of the conflict, along with a clearer recognition of the mounting threat to regional supply,” Patterson and Manthey wrote.

President Donald Trump said this week that gas prices were likely to stay elevated through the midterm elections but would fall quickly afterward.

“Right after the election, oil prices are going to be tumbling downward,” Trump told reporters at Joint Base Andrews on Wednesday before heading to Texas for the Republican Party’s midterm convention.

The president predicted that the U.S.–Iran war would end shortly after the midterms, followed soon after by a drop in U.S. gasoline prices to below $2 a gallon.

The national average gas price on Friday climbed to $4.29 per gallon, up from $4.15 a week earlier, according to AAA, which cited “volatility” in the Strait of Hormuz as the key driver.