U.S. gasoline and diesel prices rise amid Middle East tensions and refinery constraints
U.S. pump prices have climbed to their highest levels since Labor Day, driven by the Iran-Israel conflict, reduced crude flow through the Strait of Hormuz, and tight refinery operations, while diesel reached a new national record.
Gasoline prices in the United States have risen to the highest levels seen since Labor Day, with regular unleaded reaching $4.20 per gallon in parts of the Mid-Atlantic. The increase follows heightened geopolitical tension after the United States and Israel struck Iran in February, which has curtailed crude shipments through the Strait of Hormuz.
"Everything points to the Iran war and the Strait of Hormuz," said Tom Seng, a professor of energy finance at Texas Christian University.
The national average for regular gasoline remains below the June 2022 peak of $5.02 per gallon, but diesel fuel set a new record of $5.85 per gallon, raising transportation costs for freight and consumers.
Energy Secretary Chris Wright acknowledged the upward pressure on prices and said the administration is working to lower them, noting that futures markets indicate a modest expected decline in the coming months.
"If you look at the futures prices, if you wanted to buy today in bulk gasoline for two months out in November, it's about $0.35 cheaper than it is today. So the marketplace thinks gasoline prices are going to move meaningfully lower," Wright said.
Analysts highlighted additional factors that could keep prices elevated. U.S. refineries are operating near full capacity amid extreme heat in Texas, and any operational disruptions or weather events could limit supply. Overseas, Ukrainian drone attacks on Russian refineries and reduced output from Chinese plants have also tightened global gasoline supplies.
"There's just less gasoline coming out of those refineries," said Matthew Metzgar, a clinical professor of economics at UNC Charlotte.
Consumers are advised to use price-comparison apps to locate cheaper stations, especially along interstate routes where pump prices can be higher than nearby alternatives.