The price of crude oil rose for a fourth straight trading session on Thursday, part of a monthlong run that has helped push the average cost of diesel fuel to its highest level since 2022. At $5.78 per gallon on Thursday morning, the cost of diesel is up more than 53% since the war with Iran started in late February. At the time, diesel averaged $3.76 per gallon nationwide.
The price of unleaded gasoline, which most personal vehicles run on, rose alongside diesel Thursday. According to AAA data tracked by NBC News, the national average was $4.14 per gallon, up two cents from Wednesday. The moves higher in retail fuel prices come as crude oil prices keep climbing.
After surpassing $97 per barrel Thursday morning, international oil benchmark Brent was now up almost 10% since the beginning of the week. But experts are especially focused this week on diesel, the fuel powers everything from boats and trains to farm equipment and 18-wheelers. Around the world, the planting and harvesting of crops are dependent on diesel-powered machines.
As a result, higher diesel prices now could mean higher grocery prices later this fall. Several different factors are fueling the global rise in energy prices. Chief among them is the ongoing war in Iran, which analysts view as a stalemate that has choked major maritime arteries for oil and gas.
Recent attacks on ships in the critical Strait of Hormuz, coupled with retaliatory U.S. strikes on Iranian targets, mean that daily vessel traffic in the waterway remains minimal. Before the war, the strait was a critical passageway through which about 20% of the world’s oil supply passed to reach ports around the globe. Also putting pressure on gas prices this week is the recent escalation of the Ukraine war.
Combined disruptions are equivalent to around 20% of global seaborne diesel trade.” Only two developments could realistically be expected to bring meaningful relief to oil and gas prices, they wrote. One is a higher flow of oil and gas through the Persian Gulf, and the other is a resumption of Russian exports. On Wednesday, President Donald Trump said the latest round of U.S. strikes on Iran would not last “too long,” but he added, “We’re prepared to do another one any time we want.” He also said U.S. forces were “bringing lots of boats out” of the Strait of Hormuz each day.
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