It’s not just gasoline prices spiking at the pump. Diesel has jumped even more since the outbreak of the Middle East war as oil prices have surged.
The national average for gas touched the highest level this year at $3.25 per gallon on Thursday, up $0.27 from a week ago, according to AAA data.
Diesel jumped by $0.41 over the same period to $4.16 per gallon, its highest level since 2023.
Analysts say diesel markets are highly global and especially sensitive to shipping risks and maritime disruptions. The war has brought traffic to a standstill at the Strait of Hormuz, a critical Middle East shipping corridor through which roughly a fifth of the world’s oil flows.
“With elevated tension in a key global shipping corridor, diesel is reacting more aggressively than gasoline,” GasBuddy head of petroleum analysis Patrick De Haan said.
That could be passed through to prices on other goods as companies face higher transportation costs.
“Higher diesel prices absolutely tend to filter into consumer prices, though usually with a lag,” De Haan said.
Diesel is the primary fuel used for moving goods across the economy, especially long-haul trucking. Roughly 70% of US freight moves by truck, carrying everything from groceries to construction materials.
Typically, the pass-through isn’t immediate because most trucking companies build fuel surcharges into existing contracts. The impact tends to show up when those contracts renew.
“When diesel rises as quickly as it has recently … it can begin putting noticeable upward pressure on freight costs, shipping rates, and ultimately consumer prices if it persists,” De Haan said.
Oil prices surged to their highest level since 2024 on Thursday as the conflict engulfing the Middle East continued to expand.
Brent crude futures (BZ=F) rose by more than 3% to trade near $84. US benchmark West Texas Intermediate crude (CL=F) gained more than 4% to trade above $77.
