Diesel price hits all-time high in US amid Iran war woes

The cost of diesel in the United States has hit an all-time high of $5.85 per gallon, driven by the ongoing war with Iran, according to the American Automobile Association (AAA). This record price, set on Friday, outpaces the previous peak in June 2022 following Russia's invasion of Ukraine. Diesel, primarily refined from crude oil in the US, powers heavy machinery, buses, trains, and large trucks.

The price surge is anticipated to elevate transportation and production costs for various goods, including groceries. This development coincides with the upcoming congressional midterm elections in November, during which Trump's Republican Party is striving to maintain control over the US Senate and House of Representatives. Recent public opinion polls indicate that the war with Iran is unpopular among American voters, with the cost of living being a significant electoral concern nationwide.

Gasoline prices have also been on the rise, reaching a record $4.14 per gallon on Friday, just ahead of the Labor Day holiday weekend. AAA states that this Labor Day weekend price hike is the highest ever for this time of year, as continued instability in the Strait of Hormuz has pushed crude oil prices to the $90 per barrel range.

The national average had never exceeded $4 per gallon on Labor Day prior to the Trump administration's involvement in the Iran conflict. Tehran's response to the initial US and Israeli strikes in February was to block the Strait of Hormuz, a crucial conduit for global energy trade, which resulted in soaring oil and gas prices. In recent weeks, Trump and his supporters have claimed that the US military now controls the waterway, managing the flow of millions of barrels of oil through it.

Trump himself tweeted that 18 million barrels of oil traverse the strait daily, nearly identical to pre-war levels. VP Joe Biden's son, JD Vance, echoed this claim on Thursday, stating that Iran's control over Hormuz had "effectively disappeared." Vance noted that pre-war Iran had virtually no oil and gas output from the strait.

Iran, however, has accused the US administration of attempting to manipulate the market, insisting that Hormuz remains under Tehran's control. Recent suspected Iranian strikes on ships in the strait have been almost daily occurrences. Recently, an attack on a Saudi tanker killed two sailors. On Wednesday, President Trump suggested renaming the strait after himself, and previously stated that the waterway would become an American territory.