WASHINGTON — The average U.S. pump price for diesel hit $5.85 a gallon Friday, an all-time high, as Ukrainian drone strikes on Russian refineries piled fresh pressure on a market already squeezed by the six-month U.S. war with Iran, according to the American Automobile Association.
The mark eclipses the previous record of $5.81 set in June 2022 after Russia's full-scale invasion of Ukraine, and it lands on a Labor Day weekend that AAA said will bring the highest holiday pump prices ever recorded. Regular gasoline averaged $4.15 a gallon Friday, up from $3.20 a year ago. AAA said gasoline has never before topped $4 on Labor Day.
What's driving it
Diesel is used almost entirely by trucks, trains, farm equipment and heavy machinery, and its price is now on a track diverging from the rest of the oil market. Iran has effectively closed the Strait of Hormuz, through which about one-fifth of the world's oil flows, since U.S. and Israeli attacks on the country began on Feb. 28. Shipping data firm Lloyd's List Intelligence counted 102 tanker transits through the strait last week, down from 126 the week before and 130 or more per day before the war.
The newer squeeze is in refined product. Russia, the world's second-largest diesel exporter after the United States, extended a domestic diesel export ban through the end of September after Ukrainian drone strikes cut into refinery output, NBC News reported. Global diesel reserves are at critically low levels, and U.S. diesel exports hit an all-time high last month.
Brent crude, the international benchmark, traded around $95.55 a barrel Thursday afternoon, about 45 percent above its level a year ago. The U.S. benchmark hovered near $91.50.
White House response
Vice President JD Vance declined Thursday to say when Americans might see relief at the pump, telling reporters that "gas, frankly, could have been much, much higher were it not for our efforts" in the Iran war. Vance said he "wouldn't call it a war" and told reporters, "Right now, there is no active shooting," two days after new U.S. airstrikes on Iranian targets. He ruled out negotiations with Tehran until Iran halts attacks on ships in and around the Strait of Hormuz.
Asked when the fighting would end, Vance said: "You would have to ask the Iranians."
President Trump met with U.S. oil refiners at the White House on Tuesday to discuss ways to relieve fuel costs. Deputy press secretary Taylor Rogers described the session to NBC News as a "refine, baby, refine" meeting rather than a "drill, baby, drill" one. It was not clear whether any company committed to increased output; U.S. refineries are already running near capacity, NBC reported.
Last week, Trump announced a separate agreement giving the United States 55 percent control of a joint venture over 17 Venezuelan oil fields with 65 billion barrels of proven reserves. Analysts told BBC News and CBS News that Venezuelan crude would likely take years to reach volumes that could move U.S. pump prices.
What consumers face
Higher gasoline and diesel prices have cost U.S. households more than $741 each since the war began, according to a Brown University tracker cited by CBS News. Susan Bell, senior vice president of downstream research at Rystad Energy, told CBS the pain will spread through the supply chain. "The everyday consumer will see higher diesel prices in the consumer goods they purchase," she said. "Think of the groceries that get shipped around the nation, and fruits and vegetables that come from California and move by truck or rail. It's inflationary."
Joseph Brusuelas, chief economist at RSM US, told NBC News that transportation companies "are not going to be able to absorb 100% of these cost increases," and warned that grocery prices would be among the hardest hit because supermarkets are already operating on thin margins. Regional variation is wide: AAA data cited by BBC News put average diesel in Washington state at $6.81 a gallon Friday, up from $5.03 a year ago.
Political stakes
A Reuters/Ipsos poll cited by BBC News put Trump's approval rating at 33 percent, with 31 percent of Americans approving of the conflict. A Politico poll in August cited by Al Jazeera found that 61 percent of Americans believe the Iran war has made life more expensive for their families, four percentage points higher than a month earlier.
The Trump administration has shifted toward economic isolation of Iran, imposing an August package of sanctions on 60 entities dealing with Tehran while continuing intermittent airstrikes, Al Jazeera reported. Vance said this week that "everything that could happen is on the table," including diplomatic, economic, military and covert pressure.
The administration's read of the war is not universally shared. Trita Parsi, executive vice president of the Quincy Institute for Responsible Statecraft, told Al Jazeera he sees "complete military, strategic disarray on the American position" in Washington's Iran approach, which he said keeps changing tactics. Negar Mortazavi of the Washington-based Center for International Policy told the outlet that "Tehran will not capitulate under [economic] pressure." Israeli Prime Minister Benjamin Netanyahu, speaking Thursday at an event with military leaders, said Iran's regime "is currently teetering." He added it was "weaker than ever" and that overthrowing it was "within reach."
The next political test is Nov. 3, when Republicans defend narrow majorities in both houses of Congress.