Middle East Conflict Drives US Diesel Prices Above $5, Fuel Supply Concerns Rise

The ongoing conflict in the Middle East is significantly impacting energy markets, pushing US diesel prices to over $5 per gallon – a level not seen in more than three years. The surge in prices is attributed to disruptions in oil supply, particularly through the critical Strait of Hormuz.

Diesel Prices Soar to Three-Year High

The average US diesel price reached $5.04 per gallon nationally as of March 17, 2026, representing a 34% increase since the start of the US-Israel strikes against Iran on February 28, 2026 . This marks the highest price since December 2022, when Russia’s invasion of Ukraine caused widespread energy market volatility.

Impact on the US Economy

Diesel fuel is essential to the US economy, powering the transportation of goods via trucks, trains, and barges. Andy Lipow, president of Lipow Oil Associates, expressed concern about the rising prices, noting that trucking and railroad companies are already increasing fuel surcharges .

Gasoline Prices Also Climbing

Gasoline prices are also on the rise, currently estimated at $4 per gallon, with an average increase of 27% to $3.79 since the beginning of the conflict . This brings gasoline prices to their highest level since October 2023.

Oil Prices Surge Amidst Strait of Hormuz Blockade

Oil prices have increased by more than 40% during the war, with US crude trading around $94 a barrel and Brent crude hovering around $101 a barrel. A key factor driving these increases is Iran’s disruption of oil tanker traffic through the Strait of Hormuz by attacking commercial vessels .

Strait of Hormuz: A Critical Chokepoint

The Strait of Hormuz is the world’s most vital oil trade artery, handling approximately 20% of global oil supplies before the conflict . Patrick De Haan, head of petroleum analysis at GasBuddy, stated that upward pressure on fuel prices will likely continue until oil flows through the strait are significantly restored.

Trump’s Response and NATO Involvement

US President Donald Trump is urging countries to assist in securing the Strait of Hormuz by sending warships to the Middle East . He has also pressured NATO allies to take action to reopen the strait .

Regional Impacts

The conflict has widened to include strikes in Lebanon and impacts on Gulf countries, with the UAE, Qatar, and Saudi Arabia intercepting strikes. Kuwait International Airport has also sustained damage . Grand Prix races in Bahrain and Saudi Arabia, initially scheduled for April, have been cancelled due to the conflict .