The national diesel average climbed to an all-time high Monday as disruptions involving the Strait of Hormuz and Russian refineries tightened global supplies, increasing costs for trucking, agriculture and other diesel-dependent industries.

By yourNEWS Media Newsroom.

U.S. diesel prices reached a record $6.51 per gallon Monday as disruptions to Middle Eastern oil flows and Ukrainian attacks on Russian refining infrastructure continued to restrict global supplies of one of the transportation sector’s most important fuels.

AAA’s national diesel average reached $6.5107 on Sept. 21, the highest level recorded by the organization. That was up from $6.2301 one week earlier, $5.5764 a month earlier and $3.6958 one year ago.

The increase has spread well beyond the national average.

GasBuddy petroleum analyst Patrick De Haan said Sunday that live pricing data showed 10% of U.S. stations charging more than $7 per gallon for diesel. Prices among the lowest-cost 10% of stations averaged $5.83, while the median stood at approximately $6.39.

“Expecting further increases to all of these metrics,” De Haan wrote.

The price increase carries consequences throughout the economy because diesel powers much of the nation’s commercial transportation and agricultural system, including trucks, trains, ships, construction equipment and farm machinery. Reuters reported earlier this month that the national average had crossed $6 for the first time as disruptions involving Russia and the Middle East tightened supplies.

Pressure from agricultural states has consequently begun reaching Washington.

Sen. Chuck Grassley, R-Iowa, called during the weekend for President Donald Trump to consider restricting U.S. diesel exports to keep more fuel available domestically.

Grassley wrote that high diesel prices were “KILLING FARMERS INCOME” while questioning why the United States was continuing to export diesel as domestic prices climbed.

Proposals to limit exports would represent an attempt to increase domestic availability, although the consequences of such restrictions for refinery operations and international fuel markets remain part of the policy debate.

Hormuz Traffic Falls as Middle East Conflict Disrupts Energy Trade

One of the largest pressures on fuel markets is the reduced flow of energy through the Strait of Hormuz, the narrow waterway connecting the Persian Gulf with international shipping routes.

Before the current U.S.-Iran conflict, the strait carried a substantial share of the world’s oil and liquefied natural gas.

Shipping activity remains far below normal levels. Just 17 commodity vessels passed through Hormuz over the weekend, compared with 37 the previous weekend and a prewar average of approximately 125 vessels per day, according to shipping data reported Monday by Reuters.

Some oil continues moving through the strait, including shipments made by vessels operating with their tracking equipment switched off.

Saudi Arabia has also increased exports through Hormuz after attacks by Yemen’s Iran-backed Houthis disrupted the kingdom’s East-West Pipeline and its ability to move oil toward the Red Sea.

Satellite data cited by JPMorgan indicated that Saudi oil shipments through Hormuz averaged approximately 2.9 million barrels per day during a recent six-day period, compared with about 700,000 barrels per day in August.

The Houthis said Saturday that they attacked what they described as “sensitive” locations in Riyadh as well as a Saudi Aramco facility in Yanbu, a major oil-export center on the Red Sea.

Those attacks have complicated Saudi Arabia’s effort to maintain an alternative export route that avoids Hormuz.

Ukraine’s campaign against Russian energy infrastructure is creating a second source of pressure on diesel supplies.

Ukrainian drones struck Moscow’s oil refinery Sunday during what Russian authorities described as the largest drone attack yet against the Moscow region.

Moscow Mayor Sergei Sobyanin said Russian defenses had shot down more than 1,600 drones since Saturday, including approximately 450 headed toward Moscow. Several reached the refinery, and Russian officials said three people were killed elsewhere in the Moscow region during the attack.

The Moscow facility is a significant producer of refined fuels. It processed 11.6 million metric tons of oil in 2024 and produced approximately 3.2 million tons of diesel and 2.9 million tons of gasoline, according to Reuters.

Ukrainian President Volodymyr Zelenskyy said Kyiv’s long-range operations “had a very significant impact in the Moscow region last night” and described the targeted facility as “one of Russia’s key oil industry facilities,” saying Russian energy infrastructure generates “billions of dollars” for Moscow’s “war machine.”

Ukraine argues that refineries supporting Russia’s military and economy are legitimate targets.

Repeated attacks have already reduced Russian refining capacity and contributed to fuel shortages and higher prices inside Russia. Moscow has periodically restricted exports in an attempt to protect domestic supplies.

Trump has publicly urged Zelenskyy to stop targeting Russian diesel infrastructure because of the effect on worldwide fuel markets.

“Mr. Zelenskiy has to do one thing: He has to stop knocking out diesel fuel in Russia,” Trump said Sept. 13.

“We spoke to Mr. Zelenskiy about it. There are plenty of other targets. Don’t hit diesel fuel. That’s hurting the world,” Trump added.

He also said the resulting shortage was producing a “big up” in diesel costs.

Russian and Ukrainian strikes against each other’s energy infrastructure have nevertheless continued despite Trump’s announcement that the two countries had agreed to halt such attacks.

Crude Prices Retreat as Markets Watch Diplomacy

The pressure on diesel came even as crude oil prices moved lower Monday.

Brent and U.S. West Texas Intermediate futures fell to their lowest levels since Sept. 10 as traders weighed possible diplomatic developments surrounding the U.N. General Assembly against continuing supply disruptions.

Brent’s November contract was trading at $101.18 per barrel Monday afternoon in London, down $2.69, or 2.6%. The expiring October WTI contract fell $2.69 to $97.61, while November WTI stood at $93.49.

Earlier in the session, Brent was trading near $101.75 while October WTI was approximately $98.34.

“The pullback comes despite ongoing geopolitical risks and continued concerns over global oil supply disruptions,” ING analysts said in a Monday note.

“Profit-taking after recent gains, together with hopes for constructive discussions at this week’s UN General Assembly (UNGA) and the upcoming Trump-Xi meeting, helped improve market sentiment.”

Supply concerns nevertheless remain elevated.

Trump said Sunday that he would be willing to meet Iranian President Masoud Pezeshkian, who is expected to attend the U.N. gathering in New York.

Iran has separately provided intermediaries with conditions for reopening negotiations with Washington, according to reports cited by Reuters.

Those diplomatic signals have emerged alongside continued military threats.

An Islamic Revolutionary Guard Corps spokesman warned Monday that another U.S. attack could prompt Iran to expand the conflict geographically and use weapons it has not previously deployed.

“In the event of a new attack, in addition to changing the geography of the battle, new targets will be struck, and strategic weapons that have not yet been unveiled or used will be employed,” IRGC spokesman Hossein Mohabi said.

Mohabi said Iranian forces were preparing for a “war of attrition and a protracted conflict” and indicated that U.S. military installations in the region would remain the focus of Iranian retaliation while saying Tehran intended to “cause no harm to neighboring countries.”

The combination of Middle East disruptions and damage to Russian refining capacity has left diesel particularly exposed.

A Reuters analysis published Monday found that the global diesel shortage could persist into 2027, with U.S. inventories at their lowest September levels since 1982 and shortages also affecting Europe and Asia.

That imbalance has helped push diesel prices substantially higher even on days when crude oil itself declines.

For U.S. consumers, the effect reaches beyond drivers who personally own diesel vehicles. The fuel’s central role in freight, farming, construction and manufacturing means sustained prices above $6.50 can increase operating costs throughout supply chains, putting additional pressure on the price of moving food and other goods across the country.

Original article