US diesel prices hit record high amid Iran conflict

American drivers are paying more than ever before for diesel, a fuel used mainly by commercial vehicles such as trucks, trains, boats, buses, and farming and construction equipment. According to the American Automobile Association (AAA), the national average price per gallon has reached $5.85, up sharply from $3.71 a year ago and surpassing the previous record set after Russia's full-scale invasion of Ukraine.

Prices have risen steadily since late February, when the US-Israel conflict with Iran began, mirroring a jump in wholesale oil prices. The situation has been compounded by Iran's response to the war, which has effectively closed the Strait of Hormuz — a narrow waterway through which roughly a fifth of the world's oil passes.

Trump promises relief

President Donald Trump has pledged to substantially lower fuel costs for Americans through an oil agreement with Venezuela. In January, US special forces, acting on Trump's authorisation, captured former Venezuelan leader Nicolás Maduro. The deal, announced on Saturday, involves developing 17 strategic oil fields with an estimated 65 billion barrels of reserves, alongside more than $100bn in investment and over $209bn in taxes for Venezuela, according to interim President Delcy Rodríguez. The US government will hold a 55% stake in a joint venture with an experienced private operator in the country. Some analysts have expressed doubt, questioning whether the agreement will resolve long-standing barriers that have discouraged investment in Venezuela's oil sector.

Soaring fuel prices have stirred anger among voters ahead of November's midterm elections, with Trump's approval rating falling to 33% and only 31% of Americans backing the conflict, according to recent polling. Price increases vary by region — drivers in western states such as Washington now pay $6.81 a gallon, up from $5.03 a year earlier, a gap attributed to tax differences and distance from domestic oil producers. Petrol prices have also climbed, averaging $4.15 a gallon compared with $3.20 a year ago.