Diesel Prices Soar to Record Highs Amid Iran War Disruptions
Diesel fuel prices in the United States have hit record highs, reaching $6.28 per gallon on September 14, 2026. The high prices are attributed to several factors, including the ongoing US war against Iran, which has disrupted oil shipments through the Strait of Hormuz.
The war has led to a shortage in diesel refining capacity, with refineries operating at nearly 98% of their maximum capacity in late August. This has resulted in a significant increase in prices, with diesel fuel up 67% compared to September 2025's monthly national average of $3.75 per gallon.
The high prices are expected to have far-reaching implications for the US economy, particularly for industries that rely heavily on diesel fuel, such as transportation and agriculture. The cost of planting major US crops has increased by over 63% in 2026 compared to 2025, with Illinois, Iowa, and Minnesota being hit hardest.
The situation is unlikely to improve soon, with distillate inventories expected to fall below 100 million barrels in September and stay at that level through much of 2027. This has led to a proposal by US Senate Majority Leader John Thune to ban diesel exports in order to increase domestic availability.