**Skyrocketing Diesel Prices Pinch U.S. Consumers Amid Iran Conflict**
The ripple effects of the Iran war are now directly impacting American pockets, with diesel prices in the United States surging to an all-time high. The uptick in fuel prices is putting pressure on transportation and other commercial activities across the country.
In the U.S., diesel is commonly used in trucks, trains, ships, buses, agriculture, and construction. Therefore, the increase in diesel prices is not just felt by drivers but also in various sectors that rely on this fuel.
According to data from the American Automobile Association (AAA), the average price of a gallon of diesel in the U.S. has reached $5.85. A year ago, the average price was $3.71. The current price has even surpassed the highest recorded price following Russia’s full-scale military operation in Ukraine.
Diesel prices started rising sharply in the U.S. around late February, following the onset of the conflict with Iran. The global wholesale oil price increase is a primary factor behind this trend.
To alleviate the pressure from rising fuel prices, U.S. President Donald Trump recently promised to ‘substantially lower gas prices’ for all Americans. He mentioned negotiating an oil deal with Venezuela.
Earlier, in January, the U.S. special forces, Delta Force, captured Venezuela’s former leader, Nicolás Maduro, in an operation approved by President Trump.
The latest deal, announced on Saturday, plans to develop 17 strategic oilfields in Venezuela, with proven reserves of almost 65 billion barrels. Venezuela’s interim president, Delcy Rodríguez, estimates potential investments of over $100 billion and revenue of over $209 billion in taxes.
A U.S. official, speaking to CBS News on condition of anonymity, revealed that the U.S. will control 55% of the venture with a Venezuelan private company.
However, the deal is not without its concerns. Some analysts question whether the new deal can effectively address the obstacles that have long hindered investment in Venezuela’s oil sector.
The global surge in energy prices also has its roots in the crisis at the Hormuz Strait. Crude oil, a key component of gasoline, is primarily transported via this narrow strait. The virtual closure of the Hormuz Strait due to the Iran conflict has created significant uncertainty in global oil supply, driving up international prices and, consequently, retail fuel prices.
The rapid increase in fuel prices is fueling anger among American voters, with crucial midterm elections slated for November. Before then, the rise in oil prices could add to the political pressure on President Trump.
A recent Reuters poll shows that Trump’s approval rating has dropped to 33%, with only 31% of Americans supporting the ongoing conflict with Iran.
However, the increase in fuel prices is not uniform across all regions. According to U.S. government data, differences in tax rates and distances from oil production centers cause diesel prices to be relatively higher in western states.
In Washington, for instance, the average price of a gallon of diesel has reached $6.81, compared to $5.30 a year ago. Similarly, the average price of a gallon of gasoline in the U.S. is currently $4.15, up from $3.20 a year ago, marking another historic high.
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