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Iran Conflict Drives Up Diesel, Gas Prices in US

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The U.S.-Iran economic conflict has escalated, leading to higher diesel and gasoline prices in the U.S. On August 24, the U.S. announced plans to impose new sanctions on Iran's economy, dubbed 'Iran's Economic D-Day' by President Trump.

Treasury Secretary Scott Bessent said these sanctions would target entities involved in Iranian trade and shipping, including almost 60 corporations, individuals, and vessels, including several Chinese nationals.

Iran has vowed to retaliate against the U.S. with an attack, although it is unclear what kind of attack this will be. Another oil tanker was reportedly attacked by Iran in the Strait of Hormuz on August 25.

As a result of the ongoing turmoil, diesel and gasoline prices have risen. The national average on-highway diesel price increased by 20 cents to $5.652, while gas prices rose 4 cents to $4.085, according to data from the U.S. Energy Information Administration (EIA) on August 25.

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