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US Diesel Prices Reach Record High Amid Iran Conflict
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In Short: Labor Day weekend travelers are facing the highest gas prices ever for this time of year, according to AAA, as the price of diesel in the United States hits a record high of $5.85 per gallon amid ongoing tensions with Iran.
Labor Day weekend travelers are facing the highest gas prices ever for this time of year, according to AAA. A gallon of gasoline was less than $3 before the Trump administration joined Israel in starting the war on Iran, and the price of diesel has reached a record high of $5.85 per gallon (3.9 liters) amid the conflict.
The price of diesel, which is mostly refined from crude oil in the US, is used to power heavy machinery, buses, trains, and large trucks. 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 issue across the country.
The price of gasoline has also continued to rise, reaching $4.14 on Friday ahead of the Labor Day holiday weekend in the US, a record high for this time of the year. Tehran responded to the opening US and Israeli strikes in February by shutting down the Strait of Hormuz, sending oil and gas prices soaring.
The average cost of petrol has reached more than 163p per litre, according to the motoring group the RAC, which warned prices could climb higher yet. The price of fuel tends to track the wholesale price of oil, which surged when the Iran conflict began on 28 February, and since the war began, the price of a barrel of Brent crude – the global benchmark for wholesale oil prices – has been very volatile.
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- “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 started,” Vance said.
- In early July, after the framework deal was signed, prices fell back to near the $70 a barrel mark.
- RAC's head of policy Simon Williams said that, with oil prices remaining elevated, drivers will "almost certainly start paying noticeably more at the pumps in the coming weeks".
Sources
- Newslink