TLDR
- The national average diesel price hit a record $6.0556 a gallon, up from $3.70 a year ago
- Brent crude oil traded as high as $109.97 a barrel before pulling back to around $104.64
- The surge follows an escalation in fighting between the U.S. and Iran in September
- Economists say rising diesel prices tip the odds toward a Fed rate hike next week, currently at 67%
- Oil stocks including ExxonMobil, Chevron, Occidental Petroleum, and Diamondback Energy dipped in premarket trading despite a strong week
Diesel prices crossed $6 a gallon for the first time in U.S. history, hitting a national average of $6.0556 a gallon according to the American Automobile Association. That is up from around $3.70 just a year ago.
U.S. DIESEL PRICES HIT RECORD $6.05/GALLON
The national average for diesel topped $6 for the first time, up more than 60% from $3.71 a year ago, according to AAA.
Gasoline also climbed to $4.29/gallon.
Diesel prices jumped 24.1% in August and accounted for more than a third of… pic.twitter.com/lIpzLNCgAU
— Wall St Engine (@wallstengine) September 11, 2026
The previous record of $5.85 was set only a week earlier. In California, prices were approaching $8 a gallon.
Patrick De Haan, Head of Petroleum Analysis at GasBuddy, said the record prices will affect every shipment and delivery across the country. He warned the surge is likely to reignite inflation throughout the supply chain.
What Is Driving Prices Higher
The jump in fuel costs follows a sharp escalation in fighting between the U.S. and Iran this month. U.S. crude futures topped $100 a barrel for the first time since May, and are up roughly 20% in September alone.
Brent crude, the international oil benchmark, traded as high as $109.97 a barrel before pulling back to around $104.64 on Friday. Oil prices are up more than 70% in 2026 overall and have risen more than 40% since early July.
Wholesale inflation rose 0.4% in August according to producer price index data released Thursday. More than a third of that increase came from a 21.4% jump in diesel prices.
Bill Adams, chief U.S. economist at Fifth Third Commercial Bank, said the energy price surge since the start of September creates new upside risk for inflation that the August report does not capture.
What This Means for the Federal Reserve
The odds of a Fed rate hike next week currently stand at 67%, according to the CME FedWatch tool. The probability of rates staying at current levels through year-end has dropped to just 6.5%, down from 14% a week ago.
Adams said the September diesel surge tips the odds toward a hike at next week’s meeting.
Consumer price index data for August was due Friday morning and could shift those odds. But analysts say the focus has moved from whether the Fed will hike to how many times it will.
The rising fuel costs also carry political weight. With midterm elections around 50 days away, higher energy prices add pressure to the Trump administration.
Interior Secretary Doug Burgum said every idea is on the table regarding potential diesel export controls, while noting similar past measures have actually pushed prices higher.
Oil stocks had a strong week but pulled back Friday. ExxonMobil fell less than 1% in premarket trading after gaining 3.6% through Thursday. Chevron, Occidental Petroleum, and Diamondback Energy also slipped less than 1%.
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