Diesel prices reach all-time high of $6

The national average price of diesel hit $6 per gallon for the first time ever, driven by the supply constraints created by the conflict in the Middle East. As of Friday morning, the price of diesel in the United States was at a record-high $6.05 per gallon, according to AAA. Diesel prices are up roughly $2.30 from a year ago, when the national average was around $3.70. Just a week ago, diesel prices broke the record high of $5.81, set in June 2022 following Russia’s invasion of Ukraine. Higher diesel prices will be felt not only at the pump but throughout the economy as diesel is used to power trains, trucks, and other heavy machinery. It is also essential to the agricultural sector because it fuels farm equipment. In a statement, Patrick De Haan, head of petroleum analysis at GasBuddy, said: “Not every day are new all-time records set, and this will be a particularly painful one for the economy that may not even be immediately felt, but record diesel prices will impact every cargo, shipment, every delivery Americans are taking, and are likely to reignite inflation up and down the supply chain.” “And for now, it comes at a time of year when diesel prices also traditionally rise, adding more pain,” De Haan said. “I suggest Americans anticipate a costlier holiday season, as it appears diesel prices could continue climbing as geopolitical tensions continue to remain a main factor.”Nationwide gas prices were at $4.29 as of Friday, up 15 cents from last week. The record-high fuel prices are a reflection of the conflicts occurring both in the Middle East and Ukraine. President Donald Trump told reporters earlier this week that oil and gas prices won’t come down before the elections. “We’re more powerful now than OPEC, and prices right after this very important election on Nov. 3 will be plummeting,” the president said during his speech at the Republican midterm convention in Texas. “The war will be over very shortly after the election.”He added that Iran is holding out for the midterm elections to place pressure on him and in hopes of Democrats winning, but “we’re not gonna let that happen.”U.S. Central Command earlier this week said it destroyed five Iranian oil tankers in response to recent attempts to hit the U.S. Navy warships. The U.S. hit four Iranian crude ships in the Gulf of Oman and one near Kharg Island, a key oil export hub for Iran. The war in Iran has also paused shipments of fuel from flowing through the Strait of Hormuz, a key trading waterway, and crimping global fuel supply. The escalation in strikes sent oil prices soaring earlier this week. On Thursday, Brent crude peaked at around $108 per barrel, while West Texas Intermediate hit more than $104. Oil prices have since declined, with Brent at $104 per barrel and WTI sitting at $99.47 as of Friday morning. EPA DELAYS WATER REGULATION REVISION TO ALLOW MORE PUBLIC COMMENTMeanwhile, the war in Ukraine has also played a role in sending fuel prices up. Russia has halted its diesel exports, with plans to extend its ban through September and in discussions to extend the ban until the end of the year. Russian refineries have also been damaged by Ukrainian drone strikes. Russia is typically responsible for about 1 in 9 barrels of global diesel produced.