As of September 4, 2026, the national average retail price for diesel in the United States reached a record $5.85 per gallon. This figure surpasses the previous high of $5.82 per gallon recorded in June 2022. A year prior, the price stood at $3.71 per gallon, marking a 58% increase over the twelve-month period.
Global supply constraints are driven by two primary conflicts. The US-Iran conflict, which began on February 28, 2026, has disrupted transit through the Strait of Hormuz, a route previously accounting for roughly 10% of the world’s seaborne diesel supply. Additionally, ongoing strikes on Russian refineries related to the Russia-Ukraine war have further limited output.
These factors have pushed diesel crack spreads to nearly $108 per barrel in early September 2026. While prices had temporarily fallen to $4.98 per gallon in late June 2026, they have since resumed an upward trend. Analysts suggest that these energy costs may influence Federal Reserve policy, potentially impacting decisions on interest rate cuts.
In response to the rising costs, President Trump held a meeting with US oil refiners in September 2026 to discuss strategies for increasing domestic diesel production. Investors are advised to monitor crack spreads as a key indicator of refining capacity, as current levels suggest no immediate relief in supply conditions.