America Suffers as Iran War Pushes Diesel Prices Past $5 per Gallon

A war in the Middle East that has now entered its 18th day has brought significant economic hardship to the United States. Diesel prices in the United States have reportedly risen, surpassing $5 (Rp84,815) per gallon. The gallon unit used in the US is equivalent to 3.8 litres.

The average diesel price across the US has reached $5.04 (Rp85,494) nationally, an increase of 34% compared with the price per gallon the day before the US and Israel launched massive waves of air strikes against Iran on 28 February 2026.

The price surge above $5 marks the first time in more than three years. This is a consequence of the escalating war in the Middle East, which has triggered the largest oil supply disruption in history.

Diesel prices have reached their highest level since December 2022, when Russia’s full-scale invasion of Ukraine disrupted global energy markets, according to the AAA travel association.

Diesel fuel is the backbone of the US transportation sector and is critical to the American economy. The fuel is used in trucks, trains and barges that transport goods to market, among other things.

“We should be truly concerned about higher diesel prices,” said Andy Lipow, president of Lipow Oil Associates, in a statement on Tuesday, 17 March local time. Trucking and rail companies are increasing their fuel surcharges in response, he said.

Meanwhile, petrol prices are estimated to reach $4 (Rp67,852) per gallon, according to Lipow. Petrol pump prices have surged 27% to an average of $3.79 (Rp64,290) since the war began, according to AAA. Petrol prices have risen to their highest level since October 2023.

Oil prices have surged more than 40% during the war. US crude oil is trading around $94 per barrel on Tuesday, whilst Brent crude, the international benchmark, is trading around $101 per barrel.

Prices are rising because Iran has successfully halted most of the oil tanker traffic through the critical Strait of Hormuz by attacking commercial vessels.

The strait is the world’s most important trade chokepoint for oil. Approximately 20% of global oil supply passes through this narrow sea lane before the war.

“Until we see a significant recovery in oil flows through the Strait of Hormuz, upward pressure on fuel prices is likely to continue,” said Patrick De Haan, head of petroleum analysis at GasBuddy.