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

Notably, the cost of diesel in the United States has reached a record high of $5.85 per gallon (3.9 liters) against the backdrop of the war with Iran, despite President Donald Trump's repeated claim that the US is in control of the.

Key points

• US Vice President JD Vance reiterated the same message on Thursday, telling reporters that Iran's control over Hormuz is "effectively gone".
• A gallon of gasoline was less than $3 before the Trump administration joined Israel in starting the war on Iran.
• "Labor Day weekend travelers are facing the highest gas prices ever for this time of year, " AAA remarked in a report on Friday.
• Iran, nevertheless, has accused the US administration of trying to manipulate the market, insisting that Hormuz is still under Tehran's control.
• On Wednesday, the US president suggested renaming Hormuz the Trump Strait.

For context, the new record for the national average cost, according to the American Automobile Association (AAA), was set on Friday, surpassing the previous peak that was recorded in June 2022 after Russia invaded Ukraine.

Diesel – which is mostly refined from crude oil in the US – is applied to power heavy machinery, buses, trains and substantial trucks. The cost hike is anticipated to growth the transportation and production costs of numerous products, including groceries.

In practice, the new record came weeks ahead of the congressional midterm elections in November as Trump's Republican Party pushes to retain control of the US Senate and US House of Representatives.

Public opinion polls have shown that the war with Iran remains unpopular with US voters, and the cost of living has emerged as a top electoral matter nationwide.

For context, the cost of gasoline has additionally continued to rise in recent days, reaching $4.14 on Friday ahead of the Labor Day holiday weekend in the US.

Notably, the cost is a record high for this time of the year.

"Labor Day weekend travelers are facing the highest gas prices ever for this time of year, " AAA remarked in a report on Friday. "Continued volatility in the Strait of Hormuz has pushed crude oil rates in the $90 per barrel range. After a record-setting August, this Labor Day weekend is on track to additionally set a record at the pump. The national average has never been above $4 per gallon on Labor Day."

Notably, a gallon of gasoline was less than $3 before the Trump administration joined Israel in starting the war on Iran.

Tehran responded to the opening US and Israeli strikes in February by shutting down the Strait of Hormuz – a major artery for the global energy trade – sending oil and gas rates soaring.

In recent weeks, Trump and his allies have been arguing that the US military is now in control of the waterway and overseeing the passage of millions of barrels of oil through it.

Trump shared a social media post on Thursday claiming that 18 million barrels of oil are passing through the strait daily, almost the same amount as the pre-war levels.

"If you go back three months ago, how much oil and gas was coming out of the strait under Iranian threats? It was virtually nothing. Now, it's almost back to where it was before the conflict even began, " Vance stated.

It is tough to verify the amount of oil passing through the strait as the tankers crossing under US protection turn off their transponders to go undetected by Iranian forces.

Suspected Iranian strikes on ships in the strait have continued almost daily. Earlier this week, an attack on a Saudi tanker killed two sailors.

On Wednesday, the US president suggested renaming Hormuz the Trump Strait. He additionally previously stated the waterway would become an American territory.

In short, diesel price hits all-time high in US amid Iran war woes is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.