Global supply constraints, spurred on by the Iran war, drove diesel prices to new highs. Now at its highest-ever price, diesel averaged $5.85 per gallon last week. Increased diesel costs have a knock-on effect across transport, deliveries and agriculture As the Trump Administration’s Iran war continues to rage on, now in its sixth month, it’s not just gas prices that are being affected. Renewed attacks in the Middle East saw US diesel hit a new record of $5.85, as all fuel types took a hit. It’s a problem for most of the world, as the Straight of Hormuz continues to be a chokehold for ships transporting fuel from the region. Meanwhile, Russia has extended its ban on diesel exports as Ukrainian drone attacks on oil refineries further compound matters. Read: August Gas Prices Are On Track To Set An All-Time High Diesel prices are particularly relevant to everyone, as the cost of transporting goods is directly impacted by diesel, with most heavy and medium-sized freight vehicles depending on the fuel. Boats, trucks, trains, and delivery vans all depend on diesel. With little relief in sight, many businesses have already begun passing on the increased transport costs to the consumer. That means everything from ecommerce orders to your grocery list items is likely to go up in price, if it hasn’t already. Diesel Increase Outpaces Gasoline AAA While regular gasoline prices have been on the rise, AAA says diesel is rising at a more alarming rate. Today, the average price of gas in the US is $4.15 a gallon, up from $2.19 before the war started. However, in the six months since the US and Israel started striking on Iran, the average price of diesel has risen by nearly 56 percent, up from $3.75 in February to $5.85 per gallon as of Friday, September 4th, 2026. The last time diesel prices were this high was at the start of the Russia-Ukraine war, says the Associated Press. In June 2022, diesel averaged $5.82 per gallon as nations moved to impose sanctions on Russia, a top oil producer. However, prices have been higher in the past if inflation is accounted for. During the 2008 financial crisis, diesel’s market price was $4.74, which would be around $7.20 in today’s terms. Diesel Prices Hurt The UK In the UK, agriculture and rural areas are being hard hit by the price rises. Although the harvest is complete, farmers, who would normally use the country’s subsidised-for-farming red diesel to prepare for winter, are facing an uncharacteristic price spike. But it’s the volatile pricing that has left them confused, unsure when to buy. The price of all fuels had gone up by “an astronomical amount in just a few days,” said Alex Harrison, a fuel buyer at Fram Farmers, a not-for-profit farmer-owned co-operative. Speaking to The Guardian, she went on. “This latest spike has really caught everybody by surprise and hit them quite hard because it’s been such a large spike and because of the time of year.” Lead Image: Shell
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