Iran says it struck oil tanker in Strait of Hormuz

Diesel prices reached record highs on Friday, with the average gallon costing $6.43, according to GasBuddy. The surge in diesel prices is attributed to ongoing disruptions in the Strait of Hormuz, stemming from a U.S.-Israeli attack on Iran in February, and Russia's invasion of Ukraine. The increased oil and diesel prices have raised concerns about rising costs across various sectors of the economy, including fuel, energy, food, and travel.

The nationwide average price for regular gas was $4.47 per gallon, up $1.53 since the start of the U.S.-Iran conflict. Higher heating oil costs could lead to winter bills that are 31% more expensive than last year for some households. While oil prices have recently dipped slightly, they remain above $100 per barrel. If transportation costs rise due to higher fuel prices, retailers may pass those costs onto consumers, leading to increased prices on products.

The Federal Reserve raised interest rates by 0.25 percentage points on Wednesday to try to control inflation, which currently stands at 3.4%, exceeding the Federal Reserve's 2% target. The Fed chair acknowledged that higher borrowing costs wouldn't directly impact fuel prices but could help prevent price hikes from spreading further into the economy.