The War In Iran Has No End In Sight. Diesel Just Hit $6 For The First Time Ever.

U.S. diesel prices have hit $6 for the first time ever as the wars in Iran and Ukraine drag on, straining the energy industry.

Data from AAA showed prices reached $6.0556 on Friday, compared to $3.7053 a year ago. Gas prices stood at $4.2950. Increased diesel prices can directly impact prices elsewhere considering it is used to transport goods across the country and elsewhere.

The Energy Information Administration raised its forecast for next year's prices on Thursday by more than 8% compared to the previous estimates. It now expects retail diesel prices to average $4.40 a gallon next year, compared to $4.07 in the last report.

The EIA said low distillate inventories, largely a result of the global conflicts, will be a primary driver of the increase.

So far American households have paid more than $760 in additional gasoline and diesel costs since the Iran war began in late February, according to an estimate from Brown University's Iran War Energy Cost Tracker. The nationwide increase had reached roughly $100 billion by Monday as fuel prices remained well above year-earlier levels. Brent crude, the international benchmark, stood above $104.5 per barrel on Friday.

The calculations use daily gasoline and diesel prices from AAA, consumption data from the U.S. Energy Information Administration and household data from the Census Bureau.

Brown researchers estimated in mid-April that Americans had spent about $20 billion more on fuel since the conflict began, equivalent to more than $150 per household. By May 18, the additional cost had more than doubled to over $40 billion, or more than $300 per household. It has now reached $46 billion.

The nationwide increase has been unevenly distributed, with Texas consumers incurring about $11 billion in additional gasoline and diesel costs by Monday, the largest total of any state. California's burden stood at roughly $8 billion, while Florida's was nearly $5 billion, according to Brown University estimates.

Ukrainian attacks on Russian refineries and restrictions on Russian fuel exports have further tightened refined-fuel supplies, adding to pressure from disruptions to Gulf refining capacity and keeping diesel markets particularly constrained.

The higher energy costs are landing less than two months before the U.S. midterm elections, keeping fuel prices in the political spotlight. President Donald Trump has defended the war despite the increase, saying Americans are willing to pay more to prevent Iran from obtaining a nuclear weapon.