Diesel Price Surge Hits Food Shipping as Energy Costs Add Inflation Pressure

Record-high diesel prices are causing transportation costs to skyrocket across the US, putting pressure on food prices and shipping fees. The national average for diesel reached $6.06 a gallon on Friday, up from $5.85 just a week earlier and more than double what it was at this time last year.

The surge in diesel prices is largely due to disruptions in global oil supplies caused by the war in Iran and a recent drone attack that temporarily shut down Saudi Arabia's East-West oil pipeline.

Farmers in Texas are feeling the pinch, with higher diesel prices adding costs at multiple points along the supply chain. The increased transportation costs will eventually be passed on to consumers, especially for perishable goods like produce and beef.

The Federal Reserve is expected to raise interest rates next week, which could make mortgages and auto loans more expensive in the months ahead.