US diesel prices hit an all-time-high
US diesel prices have reached record highs due to ongoing geopolitical tensions involving Iran and the Strait of Hormuz. In response, the US government has announced a major oil development deal with Venezuela to increase supply and stabilize costs.
Why it matters
Rising fuel costs directly impact inflation and consumer purchasing power, creating significant political pressure ahead of upcoming midterm elections.
Image source, Getty Images By Mitchell Labiak Business reporter Published 4 September 2026, 10:58 BST Updated 15 minutes ago Drivers in the US are paying more than ever for diesel at the pump as the US-Israel war with Iran continues to hit Americans' wallets.
The average price for one gallon of diesel in the US has hit $5.85, compared to an average of $3.71 a year ago and above the previous high following Russia's full-scale invasion of Ukraine, according to the American Automobile Association (AAA).
Fuel prices have soared since the Iran conflict began at the end of February, mirroring the surge in wholesale oil prices.
In response, US President Donald Trump recently pledged to "substantially lower Gas Prices for all Americans" through an oil deal with Venezuela , which the US invaded in January.
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