The national average retail diesel price reached $5.85 per gallon on September 4, 2026, breaking the previous record of $5.82 set in June 2022. Over one year, the price jumped from $3.71 to $5.85 per gallon, a 58 percent increase. This surge stems from the US-Iran conflict disrupting the Strait of Hormuz, through which roughly 10 percent of global seaborne diesel supply previously transited, combined with strikes on Russian refineries tied to the Russia-Ukraine war. Diesel crack spreads neared $108 per barrel in early September 2026, signaling constrained refining capacity. These costs cascade through the entire supply chain, from trucking and construction to agricultural freight, and could prompt the Federal Reserve to delay or reverse planned rate cuts.
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