It's not only gasoline. Diesel prices are responding 'even more sharply' to the surge in oil costs during the Iran conflict.

Diesel and Gas Prices Surge Amid Middle East Conflict

While gasoline prices at the pump have seen a sharp increase, diesel costs have climbed even more dramatically following the escalation of conflict in the Middle East, which has driven oil prices higher.

According to data from AAA, the national average price for gasoline reached a yearly peak of $3.25 per gallon on Thursday, marking a $0.27 rise from the previous week.

During the same timeframe, diesel prices jumped by $0.41 to $4.16 per gallon, the highest level recorded since 2023.

Experts note that diesel markets are highly interconnected globally and are particularly vulnerable to disruptions in shipping and maritime routes. The ongoing war has severely impacted movement through the Strait of Hormuz—a vital passage for about 20% of the world's oil supply.

Patrick De Haan, head of petroleum analysis at GasBuddy, explained, "With mounting tensions in a major international shipping lane, diesel prices are responding even more strongly than gasoline."

Gas prices displayed at a station on March 3 in Chicago. (AP Photo/Erin Hooley) · ASSOCIATED PRESS

These rising diesel costs are likely to affect the prices of other goods, as businesses contend with increased transportation expenses.

De Haan added, "Higher diesel prices almost always make their way into consumer prices, though there is typically a delay."

Diesel serves as the primary fuel for transporting goods across the country, especially for long-distance trucking. Approximately 70% of freight in the United States is moved by truck, delivering everything from food to building supplies.

However, the impact on consumer prices is not immediate, since most trucking companies include fuel surcharges in their contracts. The effects generally become apparent when these contracts are renewed.

"When diesel prices rise as rapidly as they have recently, it can start to significantly increase freight and shipping costs, and eventually push up prices for consumers if the trend continues," De Haan noted.

Oil Prices Reach New Highs

On Thursday, oil prices soared to their highest point since 2024 as the conflict in the Middle East intensified. Brent crude futures climbed over 3% to nearly $84 per barrel, while US benchmark West Texas Intermediate crude rose more than 4%, surpassing $77 per barrel.

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