CHICAGO (AP) — Diesel hit a new record price in the United States on Friday, rising to an average of $5.85 a gallon for the first time in history, as the six-month war with Iran disrupts the global flow of fuel. This could add to Republicans’ political challenges ahead of November’s midterm elections, at a time when voters are already resentful of President Donald Trump’s handling of the economy. AP-NORC polls this summer showed that two in three American adults disapproved of how Trump is handling the economy. More expensive fuel is driving up bills for businesses across industries, some of which have already passed the costs on to consumers in the form of extra fees on online orders and mail-order packages. And shoppers can see more and more stickers hitting store shelves. One of the most immediate strains is felt in the grocery aisle, particularly with produce, meat and other perishable foods that must be transported and replenished frequently, or even harvested with diesel-powered farm equipment. It may take time for all of those costs to come down. Still, experts warn that price increases could increase as diesel remains expensive. A variety of other products are also transported by diesel trucks, trains, and ships, including clothing, cosmetics, furniture, and more. The price of regular gasoline has also been rising, although not as fast as the price of diesel. The average price was $4.15 a gallon, compared to $3.20 this time last year, according to AAA, which says gas has never been above $4 a gallon on Labor Day. However, regular gasoline prices are far from the record high of $5.02 a gallon set in June 2022. What’s driving diesel’s latest jump? Before the United States and Israel launched their war against Iran in late February, the national average for a gallon of diesel was about $3.76 in the United States, according to AAA. Prices rose rapidly as the cost of crude oil (the main ingredient in diesel as well as gasoline) soared amid supply chain disruptions and production cuts across the Middle East, particularly with most tanker traffic stalled in the key Strait of Hormuz. Although prices cooled somewhat during peace hopes earlier this summer, oil has renewed its rise as fighting between the United States and Iran intensifies once again. Brent crude, the international standard, was trading at more than $95 a barrel on Friday, down from about $70 before the war. Prices at the pump always follow closely behind. The last time American businesses and drivers saw sky-high fuel prices was in June 2022, when diesel averaged nearly $5.82 a gallon, months after the Ukraine war began and world leaders imposed sanctions against Russia, a major oil producer. However, when adjusted for inflation, prices have been higher in the past. Before the 2008 financial crisis, for example, diesel peaked at around $4.74 a gallon, equivalent to $7.20 in 2026, according to the latest government data. And the 2022 record of nearly $5.82 would be about $6.56 this year when inflation is taken into account. Subscribe to Morning Wire: Our flagship newsletter breaks down the day’s biggest headlines. That doesn’t take away the pain of current high prices, which are already causing knock-on effects for the economy and higher costs of living. Drivers also feel the pain every time they fill up with gas. The average of $4.15 for a gallon of regular unleaded gasoline is up from Iran’s pre-war $2.98, though it is still well below the 2022 high of nearly $5.02 per gallon nationwide. Diesel has been more expensive than gasoline for decades and its price has increased at a faster rate during recent energy crises. Some reasons include tighter supply, less flexibility in demand and diesel’s position in global trade in general. Individual households may find ways to drive less when gas prices are high, for example, but there are fewer immediate substitutes for networks that rely on diesel to help produce and transport goods around the world. All eyes on foodDiesel is integral to every part of the food supply chain. It powers farm equipment and fishing boats, as well as trains, cargo ships, and trucks that bring food to grocery stores. Fuel accounts for about 15% to 30% of total food costs, according to the Independent Grocers Alliance, a grouping of 7,500 global supermarkets. Because of this, higher diesel costs often result in more expensive food, although energy crises can take a while to work their way through the supply chain. Items that need to remain refrigerated while being transported are often the first to see prices rise, according to David Ortega, a professor of economics and food policy at Michigan State University. In July, for example, overall U.S. grocery prices rose 2.7% compared to last July, but seafood prices rose 7% and fresh fruit prices rose 4.9%. Ortega warned that there may be other factors at play when food prices rise or fall. Lettuce also faced higher transportation costs in July, but a drop in demand due to the cyclospora outbreak caused prices to fall. Still, consumers could feel more pressure as diesel prices remain high. “Initially, much of the cost increase is absorbed along the supply chain through existing transportation contracts and retailers’ margins,” Ortega said. “But as contracts change price and fuel surcharges are imposed, more of that cost finds its way to the supermarket.” More fuel crisis In April, e-commerce giant Amazon implemented a temporary 3.5% fuel and logistics surcharge for some third-party sellers. And United Parcel Service, FedEx and the U.S. Postal Service also moved to add fees to some of the packages they shipped early in the war, citing rising fuel operating costs overall. Ajesh Kapoor, CEO and founder of transportation technology company SemiCab, said trucking and transportation can adapt to rising diesel prices, but at some point there is a limit. “The price of diesel has a very, very direct impact on everything that moves in virtually any mode,” Kapoor said. The ramifications extend beyond the consumer movement. estate. Some public transport buses and trains are also diesel-powered, and diesel generators are often used as backup or emergency power, if not central electricity sources, in some remote parts of the world. Experts warn that the consequences could continue to deepen, particularly in countries in Africa and Asia, which are most dependent on imports from the Middle East and have already been hardest hit by energy crises over the course of the war. Neil Atkinson, an energy analyst and senior fellow at the National Center for Energy Analysis, said refined petroleum products like diesel are becoming more expensive as supplies run out. “This is gradually becoming a major crisis because A) the prices themselves are very high, but physical stocks of these products are declining,” he said in a weekly briefing with maritime data firm Lloyd’s List Intelligence, pointing to the pressure on the global refining system. “This can’t go on forever.” ___ Associated Press writers Dee-Ann Durbin in Detroit, Mae Anderson in New York and Bill Barrow in Atlanta contributed to this report.
