While a physical fight is still happening in the Strait of Hormuz, an economic one between the U.S. and Iran is just beginning. 

On August 24, the U.S. revealed plans to impose new sanctions that would threaten Iran’s economy. President Trump is referring to these sanctions as “Iran’s Economic D-Day.” 

According to Treasury Secretary Scott Bessent, these sanctions would target entities that are involved in Iranian trade and shipping. This list of almost 60 entities includes corporations, individuals, and vessels, including several Chinese nationals. The last inclusion is upsetting to China and raises more questions about how China, Tehran’s top trading partner, will be affected.  

In response to these threatened sanctions, Iran isn’t backing down. On August 25, the country vowed to retaliate against the U.S. with an attack, though it isn’t yet clear what kind of attack this would be. Fox News reports that another oil tanker was attacked in the Strait, reportedly by Iran. 

Unsurprisingly, diesel and gasoline prices are still rising in the U.S. as the turmoil between these two countries escalates.

The national average on-highway diesel price rose 20 cents to $5.652, according to data released by the U.S. Energy Information Administration (EIA) on August 25. Gas prices rose 4 cents to $4.085. Compared to last year, diesel prices are up $1.944, and gas prices are up 94 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 24 cents to $5.481.
• West Coast: Along the West Coast, diesel prices rose 20 cents to $6.407. Without including California, diesel prices rose 16 cents to $5.859.
• Midwest: Diesel prices rose 20 cents to $5.636.
• East Coast: Along the East Coast, diesel prices rose 16 cents to $5.498. 
• Rocky Mountain: In the Rockies, diesel prices rose 11 cents to $5.537.

According to AAA Motor Club (AAA), the current national diesel price average is $5.620. This is 3 cents lower than EIA’s current estimate and $1.938 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 $4.085, according to EIA, 4 cents higher than last week’s average. 

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

• Rocky Mountain: The biggest rise in gasoline prices this week occurred in the Rockies for 7 cents to $4.359.
• West Coast: Along the West Coast, gas prices rose 6 cents to $5.147. Without including California, gas prices rose 7 cents to $4.776.
• East Coast: Along the East Coast, gas prices rose 6 cents to $3.921.
• Gulf Coast: Along the Gulf Coast, gas prices rose 2 cents to $3.638.
• Midwest: In the Midwest, gas prices dropped 0.4 cents to $3.934.

According to AAA, the current national gasoline price average is $4.097. This is 1 cent higher than EIA’s current estimate and 94 cents higher than this time last year. 

In a recent press release, AAA said, “This August is shaping up to be the highest on record. So far, the monthly average is $4.06, currently surpassing 2022 when the monthly average for August was $3.97. Even though gasoline demand is down, which is typical for this time of year, crude oil is pushing up the national average. Crude oil prices remain in the $80 per barrel range amid continued instability in the Strait of Hormuz.”