Diesel hits record high

The average price for a gallon of diesel reached around $6.43 as of Friday, marking a historic peak driven by global supply disruptions.

“The average price for a gallon of diesel was still hovering around a record-high of $6.43 as of Friday morning”

Two conflicts driving the spike

The Strait of Hormuz disruption from a U.S.-Israeli attack on Iran in February, combined with Ukraine's intensified strikes on Russian oil facilities, are squeezing global supply.

Regular gas up $1.53 since Iran war

Regular gasoline averaged $4.47 per gallon on Friday, up $1.53 since the U.S. conflict with Iran began nearly seven months ago.

Winter heating bills soaring

Households using heating oil could face winter bills more than 31% higher than last year, while overall heating costs are expected to rise 8.7%, according to the National Energy Assistance Directors Association.

Supply chain costs ripple outward

Higher diesel costs force wholesalers to raise transport expenses, which retailers pass to shoppers through higher prices on everything from groceries to goods.

“Since diesel is the lifeblood of the supply chain, a rise in fuel costs may result in higher prices charged by wholesalers”

Inflation now 3.4%, above target

The annual inflation rate hit 3.4% in August, more than a percentage point above the Federal Reserve's 2% target, driven partly by the Iran war outbreak seven months ago.

Fed raises rates to contain prices

The Federal Reserve raised interest rates for the first time since 2023 on Wednesday, hoping higher borrowing costs will slow spending and prevent fuel price spikes from spreading throughout the economy.

“We cannot affect any individual price, whether it be oil prices, whether it be food stuffs at the grocery store. But what we can do, and will do, is ensure that any change in relative prices don't broaden out”