US diesel and gasoline prices hit records amid Iran war and Strait of Hormuz volatility

Diesel prices in the United States have reached a record national average of $5.85 per gallon, according to the American Automobile Association, as the war with Iran continues to unsettle energy markets. Gasoline prices also climbed to $4.14 per gallon, setting a Labor Day weekend record ahead of the holiday travel period. The price moves come as traders and consumers continue to watch the Strait of Hormuz, a key route for global oil shipments.

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The diesel record was reported on Friday and surpassed the previous high set in June 2022 after Russia's invasion of Ukraine. Diesel is widely used to power heavy machinery, buses, trains and large trucks, so higher prices can quickly feed into transport and production costs. The same report said Labor Day weekend travelers were facing the highest gas prices ever for this time of year.

The national average for gasoline has never been above $4 per gallon on Labor Day, the association said. The association said continued volatility in the Strait of Hormuz had pushed crude oil prices into the $90 per barrel range. The waterway is a major artery for the global energy trade, and disruptions there can affect supply expectations far beyond the region.

The price rise is also landing weeks before the US congressional midterm elections in November, when the cost of living is expected to remain a central political issue. Public opinion polls have shown the war with Iran remains unpopular with US voters, adding to the domestic sensitivity of fuel costs. The latest spike follows a period in which gasoline had been below $3 per gallon before the Trump administration joined Israel in starting the war on Iran, according to the supplied material.

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Tehran responded to the opening strikes in February by shutting down the Strait of Hormuz, sending oil and gas prices higher. In recent weeks, Donald Trump and his allies have argued that the US military is now in control of the waterway and overseeing the passage of millions of barrels of oil through it. Trump also shared a social media post on Thursday saying 18 million barrels of oil were passing through the strait daily.

The record prices matter because diesel and gasoline costs can influence inflation, freight rates and household spending at the same time. They also carry political weight in the run-up to the November elections, particularly for a Republican Party seeking to retain control of both chambers of Congress. The situation highlights how a regional conflict can quickly affect US consumers even when the immediate disruption is far from American territory.

It also shows how energy markets remain sensitive to any uncertainty around one of the world's most important shipping chokepoints. What remains unclear is how long the current price pressure will last and whether the Strait of Hormuz will remain stable enough to ease crude prices. The supplied material does not give a timeline for any further policy response or market intervention.

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