Diesel fuel, the lifeblood of U.S. industry, crossed an alarming and historic benchmark Tuesday.
Amid the Iran War and the Strait of Hormuz crisis, the U.S. average retail diesel prices have crossed $5 a gallon, the highest since December 2022. (RELATED: What Is Going On With The Strait Of Hormuz?)
This marks only the second time diesel prices have hit the historic 5-dollar benchmark, according to Reuters. Tuesday’s new average of $5.04 is now a record high, according to analysts at GasBuddy.
Meanwhile, gas prices across the country have surged 74 cents a gallon. This reportedly marks nearly a 30% increase over the past month, the highest monthly spike since Hurricane Katrina.
MIDLAND, TEXAS – MARCH 16: Pump jacks are seen at sunset on March 16, 2026, in Midland, Texas. Oil prices have risen roughly 4% as the recent conflict involving Iran, the United States, and Israeli forces heightens global concerns over energy costs. Attacks on energy infrastructure and shipping disruptions through the Strait of Hormuz—a critical passage responsible for about 20% of the world’s oil supply—are intensifying fears of supply shortages and rising inflation, as production and exports across the region continue to be disrupted. (Photo by Brandon Bell/Getty Images)
The rising price of diesel fuel, essential to American farmers, shipping companies, and the construction industry, could mean higher prices for consumers.
Matt McClain, a petroleum analyst with GasBuddy, warned in a The Center Square interview that the “extraordinarily sharp increase in a very short amount of time” could trickle down and affect “everything.”
The price of groceries is expected to increase, as farmers use diesel fuel to run their equipment and ship food. Housing and renovation prices could also bump up, as bulldozers, excavators, and dump trucks all rely on diesel fuel. Most building materials are also transported by diesel trucks.