U.S. diesel price hits an all-time high as the Iran war disrupts the flow of fuel

The U.S. experienced its highest ever average diesel price of $5.85 per gallon on Friday, attributed to the ongoing war with Iran disrupting fuel supplies worldwide. Diesel is a key component in many freight and delivery networks, leading to increased transportation costs for a wide range of everyday goods. This price surge could exacerbate political challenges for Republicans ahead of November's midterm elections, as voters remain dissatisfied with President Donald Trump's economic management, with 2 out of 3 U.S. adults disapproving of his handling of the economy, according to recent polling.

The higher fuel costs are raising bills for businesses across various sectors, some of which have already passed on the costs to consumers through additional fees on online orders and mailed packages. Shoppers may also witness sticker shock at store shelves. One of the most immediate impacts is felt in the grocery aisle, especially with perishable foods like produce, meat, and other items that require frequent handling or harvesting using diesel-powered farm equipment.

It can take time for these costs to trickle down to consumers. Prices for regular gasoline have also increased, although not as rapidly as diesel. The average price was $4.15 per gallon, compared to $3.20 at this time last year, with gas never surpassing $4 a gallon on Labor Day. The price of diesel has been more volatile than gasoline, partly due to its greater importance in global commerce and limited supply.