Diesel Prices Soar to Record $5.85 Amid U.S.-Iran Tensions

Diesel price hits new record high of $5.85 as U.S.-Iran conflict disrupts energy markets

Diesel prices have reached a new national record, adding pressure to truck drivers and carriers already dealing with higher operating costs.

The average price for a gallon of diesel rose to $5.85, according to AAA. That is the highest recorded average since June 2022, when diesel reached $5.82 per gallon. The current price is also $2.14 higher than it was a year ago.

For a truck with a 150-gallon fuel tank, filling up at the national average now costs about $878. A year ago, the same fill-up would have cost roughly $321 less, based on the annual price difference reported by AAA.

Analysts have linked the increase primarily to continued hostilities between the United States and Iran, along with the ongoing Russia-Ukraine war. Recent U.S. and Israeli strikes on Iran have increased concerns about disruptions to crude oil supplies from the Middle East.

Those concerns have been reflected in crude markets. West Texas Intermediate crude was trading at about $90.24 per barrel, while Brent crude stood at approximately $95.32 per barrel. The price of WTI has risen by about $8 per barrel since the attacks began.

Energy traders have paid particular attention to the Strait of Hormuz, a major route for global oil shipments. Tanker traffic through the strait has come to a near standstill after Iran declared it closed following attacks by the United States and Israel. Any sustained interruption to shipments through the waterway could affect the supply available to international markets.

Although markets have recently had significant oil inventories, analysts say that reserve supplies may only soften the impact of a short-term disruption. China has substantial oil stored both on land and offshore, giving some countries a cushion against immediate shortages. However, continued conflict and uncertainty have pushed prices higher.

The increase in diesel prices matters especially to trucking because diesel is one of the largest operating expenses for long-haul carriers and independent drivers. Fuel costs affect every mile traveled, and the impact can be significant for drivers who cover thousands of miles each week.

“Diesel sort of runs the U.S. economy,” Dean Croke, principal analyst at DAT Freight & Analytics, told Politico. “And I think that’s the bigger problem.”

Higher fuel prices can also affect freight rates, fuel surcharges and the cost of goods transported by truck. Carriers may pass part of the increase through fuel-surcharge programs, but those programs do not always cover every cost faced by an owner-operator. Fuel efficiency, deadhead miles, route changes and the timing of fuel purchases can all influence the effect on a driver’s weekly income.

Gasoline prices have also risen sharply. The average price for a gallon of regular gasoline in the United States was reported at $4.50 on May 12, with prices particularly high in states including California, Ohio and Arizona. Gasoline prices were nearly 30 percent higher than a year earlier, contributing to a broader rise in consumer costs.

Economists have warned that the conflict with Iran could keep energy prices elevated. The White House, however, said the increase would likely be temporary, describing the higher prices as the result of disruptions connected to the military operation known as Operation Epic Fury.

Gas stations can change prices several times a week. Because many operate on narrow margins, they generally set prices according to the expected cost of their next fuel shipment rather than the cost of fuel already in their tanks. That allows changes in crude oil markets to reach the pump quickly.

One commonly used industry estimate is that every $1 increase in the price of a barrel of oil eventually adds about 2.5 cents to the retail price of a gallon of gasoline. Diesel prices are influenced by crude costs as well as refinery capacity, seasonal demand and competition for fuel supplies.

For professional drivers, the record diesel price means tighter margins on every load. Until energy markets stabilize, fuel planning and accurate surcharge calculations will remain central to keeping trucks moving profitably.