US diesel prices hit an all-time-high

Drivers across the United States are facing record-high diesel fuel prices, a consequence of the ongoing US-Israel conflict with Iran. Currently, the average price for one gallon of diesel in the US is $5.85, a significant jump from $3.71 a year ago and above the previous peak following Russia's invasion of Ukraine. This surge in fuel costs is a direct result of the rising wholesale oil prices triggered by the Iran conflict that began in late February.

In response to these escalating costs, US President Donald Trump has vowed to "substantially lower Gas Prices for all Americans" through a potential oil deal with Venezuela. In January, the former Venezuelan leader Nicolás Maduro was detained by US special forces, a move authorized by President Trump. The latest agreement, unveiled on Saturday, envisions the development of 17 strategic oil fields with an estimated 65 billion barrels of proven potential, along with an investment of over $100 billion and approximately $209 billion in taxes for Venezuela, according to Interim Venezuelan President Delcy Rodríguez.

The US government will maintain a 55% stake in the joint venture with a private operator in Venezuela, a US official disclosed to the BBC’s US partner CBS News. However, some analysts have expressed skepticism, questioning whether the deal will overcome the long-standing challenges that have deterred investment in Venezuela’s oil industry.

The scarcity of oil has been exacerbated by Iran's response to the war by effectively closing the Strait of Hormuz, a critical waterway through which a fifth of the world's oil is transported. This has led to soaring pump prices, which have angered US voters as they head into the crucial midterm elections in November. Recent polling by Reuters/Ipsos shows Trump's approval rating at 33%, while only 31% of Americans approve of the conflict.

However, the impact of these high prices is not felt equally across the nation. According to AAA's data, Western states, where tax rates differ and they are further from US oil producers, are paying significantly more for diesel. For instance, in Washington, the average price is $6.81 a gallon, compared to $5.03 a gallon a year ago.

Along with the high diesel prices, Americans are also facing historically elevated petrol costs, with the average price per gallon reaching $4.15, up from $3.20 a year ago.