US diesel price hits new record high in blow to Trump

On February 28, the average diesel price in the United States skyrocketed to $3.7577 per gallon following the start of the US-Iran war. The US Automobile Association (AAA) reported on Tuesday that diesel prices had reached a record high of nearly $6.27 per gallon, putting pressure on President Donald Trump ahead of the midterm congressional elections.

The price, which primarily fuels road hauling, agriculture, and construction, soared to $6.2694 per gallon, according to AAA. Global Risk Management's chief analyst, Arne Lohmann Rasmussen, stated that the Middle East conflict is tightening supplies and Ukraine's attacks on Russian refineries are exacerbating the situation. However, the lack of refined products from the Middle East remains the primary concern.

Rasmussen added that a cessation of Ukrainian attacks on Russian refineries could alleviate the diesel balance issue, but the Middle East shortage is far more critical. The diesel and gasoil markets have been extremely tight, with crack spreads -- the price difference between crude oil and refined products -- surging after the Iranian war began.

Average US diesel prices breached the $6-per-gallon mark for the first time on Friday, having climbed from $3.7577 per gallon at the war's onset. The peak price reached $5.8159 per gallon in June 2022, a few months after the Russia-Ukraine conflict commenced.