What happened
Fuel prices in the US are expected to rise again due to ongoing conflicts in the Middle East, which have disrupted global energy supply chains. The national average price of gas was $4.43 per gallon, and the average diesel price was $6.39 a gallon, with California paying the highest prices at $6.08 and $8.34 a gallon, respectively.
Analysts, including GasBuddy's Patrick De Haan and Tom Kloza, chief energy adviser for Gulf Oil, warn that gas and diesel prices could climb even higher in the coming days, reaching unprecedented levels. De Haan predicts that the average gas price could set a new 2026 high by the weekend, while Kloza expects staggering increases at the pump for both gasoline & diesel within the next 24 hours.
The Iran conflict, which started in February, has resulted in a slowdown in fuel shipments through the Strait of Hormuz, contributing to the rise in fuel prices. Recent strikes in the region, including the shutdown of Saudi Arabia's East-West Pipeline, have further exacerbated the issue. The pipeline's damage is expected to take a month or two to repair, according to consultant Andrew Lipow.
Russia's invasion of Ukraine has also driven up prices, with Russian refineries being damaged by Ukrainian drone strikes. Russia has halted exports of diesel until the end of October, which will likely continue due to the recent attack on the Yaroslavl oil refinery.
