A line that’s getting old quickly: Fuel prices rose again this week, driven by unrest in the Strait of Hormuz. Diesel prices pushed past $6, hitting a new record.

As violence in the Strait intensifies, shipping traffic is slowing down significantly. The snowball effect of reduced shipping is driving up crude oil prices, which raises fuel prices, which in turn increases trucking and shipping costs, ultimately affecting the entire supply chain. Accordingly, inflation is also spiking. 

Peace between the U.S. and Iran is still up in the air. Though the outlook certainly isn’t optimistic, the idea has been floated around more this week. President Trump is now saying that he’s open to peace with Iran, despite prior comments casting doubt on the country’s trustworthiness. 

"The failing Nation of Iran wants to make a deal, quickly and badly. I will determine whether or not the U.S.A. will choose to engage—the concept of which we are open to,” Trump said on his social media platform on September 14. 

Could this change in strategy have anything to do with the upcoming midterm elections and his push for support of the Republican Party? The answer to that question is above my pay grade. 

Information from Iran is less positive. The secretary of Iran's Supreme National Security Council is pushing for the country’s demands to be met before any negotiations can begin. 

The national average on-highway diesel price rose 32 cents to $6.285, according to data released by the U.S. Energy Information Administration (EIA) on September 15. Gas prices rose 16 cents to $4.319. Compared to last year, diesel prices are up $2.546, and gas prices are up $1.151.

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.:

• East Coast: The biggest increase in diesel prices this week occurred off the East Coast, rising 41 cents to $6.158.
• Midwest: Diesel prices rose 30 cents to $6.250.
• Gulf Coast: Off the Gulf Coast, diesel prices rose 27 cents to $6.027.
• West Coast: Off the West Coast, diesel prices rose 26 cents to $7.250. Without including California, diesel prices rose 25 cents to $6.566.
• Rocky Mountain: In the Rockies, diesel prices rose 26 cents to $6.066.

According to AAA Motor Club (AAA), the current national average diesel price is $6.269. This is 4 cents lower than EIA’s current estimate and $2.583 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 $4.319, according to EIA, up 16 cents from last week’s average. 

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

• Midwest: The biggest increase in gasoline prices this week occurred in the Midwest, up 20 cents to $4.091. 
• Gulf Coast: Off the Gulf Coast, gas prices rose 17 cents to $3.852.
• East Coast: Off the East Coast, gas prices rose 16 cents to $4.191
• Rocky Mountain: In the Rockies, gas prices rose 12 cents to $4.438. 
• West Coast: Off the West Coast, gas prices rose 11 cents to $5.467. Without including California, gas prices rose 5 cents to $5.026. 

According to AAA, the current national gasoline price average is $4.329. This is 1 cent higher than EIA’s current estimate and $1.151 higher than this time last year. 

In a recent press release, AAA said, “Volatility in the Strait of Hormuz has pushed crude oil back in the $100 per barrel range for the first time since July. Pump prices are currently comparable to early June. The national average is increasing during a season when gas prices typically go down due to lower gasoline demand.”