Updated
Updated · The New York Times · Aug 26
U.S. Diesel Hits $5.62 a Gallon as Iran War Disruptions Squeeze Fuel Supplies
Updated
Updated · The New York Times · Aug 26

U.S. Diesel Hits $5.62 a Gallon as Iran War Disruptions Squeeze Fuel Supplies

3 articles · Updated · The New York Times · Aug 26

Summary

  • $5.62 a gallon — the U.S. average diesel price on Wednesday — left fuel costs 53% above a year earlier and near the 2022 record of $5.82.
  • Supply disruptions after the United States and Israel went to war with Iran drove the surge in a fuel that powers trucks, trains, farms and heavy machinery.
  • Iowa farmer Randy Madden said he expects to spend more than $40,000 on fuel for harvest season, roughly double his usual late-summer through year-end bill.
  • Because diesel is a core business fuel rather than mainly a consumer driving fuel, the jump is likely to raise the cost of transporting goods and running equipment across the economy.

Insights

As farmers and truckers absorb massive losses, who truly profits from the global diesel drought?
Could this severe geopolitical squeeze on diesel inadvertently accelerate the transition to alternative-fuel logistics?
Will the unprecedented refining bottleneck trigger a broader supply chain collapse before the year ends?