Diesel crosses $5 per gallon average in the US

The national average price for diesel has exceeded $5 per gallon as the war in Iran strains oil supplies, according to AAA.

Diesel, like gasoline, is made from oil. It is often used to fuel trucks used in shipping, and high diesel prices can raise the price of trucked goods.

A month ago, before the conflict began, diesel prices in the U.S. averaged about $3.65 per gallon. It’s average price is now about $5.04 per gallon.

According to Patrick De Haan, head of Petroleum Analysis at GasBuddy, this marks the second time ever that the average diesel price has exceeded $5, the first bein in 2022 in the wake of Russia’s invasion of Ukraine.

The conflict in Iran has effectively halted shipping through the Strait of Hormuz, which is located near Iran and is a key shipping lane for goods including oil. About a fifth of the world’s oil consumption flows through the strait on an average day.

This supply crunch has squeezed markets. Other petroleum-based fuel, including gasoline, has also risen in recent weeks. According to AAA, gasoline prices were averaging about $3.80 per gallon on Tuesday, up from $2.92 a month ago.

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