Diesel prices spike above $5 as Strait of Hormuz tensions threaten oil supply

Fleets face renewed fuel cost pressures as Iran war escalation drives diesel and gasoline prices higher nationwide.

Key takeaways

  • EIA reports national diesel prices rose to $5.134, up 34 cents from the previous week.
  • Diesel prices increased across all U.S. regions, with the Gulf Coast seeing the largest jump.
  • Higher fuel costs are adding pressure to fleet operating budgets and transportation expenses.

As the Iran war escalates and tensions in the Strait of Hormuz skyrocket, diesel and gasoline prices are also on the rise.

These increases mean U.S. fuel prices are right back where they started when the Iran war began in February, according to ABC News. Prices had gone down for several straight weeks while the U.S. and Iran were engaged in peace talks. 

But now that the conflict has resumed with strikes from both sides—in the Strait of Hormuz and beyond—and there are new military injuries and deaths across the Middle East, the global oil supply concerns have returned. 

The national average on-highway diesel price rose 34 cents to $5.134, according to data released by the U.S. Energy Information Administration (EIA) on July 21. Gas prices rose 15 cents to $4.001. Compared to last year, diesel prices are up $1.322, and gas prices are up 88 cents.

What are the current diesel prices across the U.S?

Here are this week’s diesel price highlights from each region of the U.S.:

  • Gulf Coast: The biggest increase in diesel prices this week occurred along the Gulf Coast for 40 cents to $4.942.
  • Rocky Mountain: In the Rockies, diesel prices rose 34 cents to $4.935. 
  • Midwest: In the Midwest, diesel prices rose 33 cents to $4.988.
  • West Coast: Along the West Coast, diesel prices rose 33 cents to $5.877. Without including California, diesel prices rose 31 cents to $5.362.
  • East Coast: Along the East Coast, diesel prices rose 30 cents to $5.194.
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According to AAA Motor Club (AAA), the current national diesel price average is $5.142. This is 1 cent higher than EIA’s current estimate and $1.420 higher than this time last year.

What are the current gasoline prices across the U.S.?

The current national average on-highway gasoline price is $4.001, according to EIA, 15 cents higher than last week’s average. 

Here are this week’s gasoline price highlights from each region of the U.S.:

  • Gulf Coast: The biggest increase in gasoline prices this week occurred along the Gulf Coast for 17 cents to $3.588.
  • East Coast: Along the East Coast, gas prices rose 16 cents to $3.924. 
  • West Coast: Along the West Coast, gas prices rose 15 cents to $4.983. Without including California, gas prices rose 15 cents to $4.541.
  • Rocky Mountain: In the Rockies, gas prices rose 13 cents to $3.956.
  • Midwest: In the Midwest, gas prices rose 12 cents to $3.780.

According to AAA, the current national gasoline price average is $4.019. This is 2 cents higher than EIA’s current estimate and 88 cents higher than this time last year. 

In a recent press release, AAA stated, “The national average for a gallon of regular gasoline went up 10 cents since last week to $3.94. Instability along the Strait of Hormuz is contributing to the increase at the pump and pushing crude oil prices toward $80 per barrel. Most states are still averaging less than $4 per gallon. Earlier this year, the national average remained in the $4 range all of April and May and most of June. Last time the national average was $4 or above was on June 17 when it was $4.02.”

About the Author

Jenna Hume

Jenna Hume

Digital Editor

Digital Content Specialist Jenna Hume joined FleetOwner in November 2023 and previously worked as a writer in the gaming industry. She has a Bachelor of Fine Arts degree in creative writing from Truman State University and a master of Fine Arts degree in writing from Lindenwood University. She is currently based in Missouri. 

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