US Diesel Prices Soar Past $6 a Gallon Amid Ongoing Iran Conflict

Diesel prices in the United States have hit a record high of over $6 per gallon on average, according to motor club AAA.

This surge is largely due to the ongoing conflict between the US and Iran, which has disrupted global fuel supplies and driven up crude oil prices. Brent and US crude oil both surpassed $100 a barrel for the first time in months this week.

The higher diesel costs will likely be passed on to consumers through increased fees on online orders and packages, as well as higher grocery prices. Perishable foods such as meat and produce are particularly affected by expensive diesel fuel, as they need to be transported frequently and may be harvested using equipment powered by diesel.

David Ortega, a professor of food economics and policy at Michigan State University, noted that early on, much of the cost increase gets absorbed along the supply chain through existing freight contracts and retailer margins. However, as contracts reprice and fuel surcharges take hold, more of that cost makes its way to the grocery store.