Diesel prices have risen sharply worldwide since the US-Israel bombing of Iran began in late February, according to multiple reports. In the United States, the average price for a gallon of diesel hit $6.32 on Tuesday, up from $3.76 on the eve of the conflict, data from AAA shows. The record eclipses the previous high following Russia's invasion of Ukraine. September marked the first time the national average breached $6 per gallon.
In the United Kingdom, the average price of diesel on forecourts rose above £2 per litre, a fresh record. The war in the Middle East continues to disrupt global fuel supplies, with Iran effectively closing the Strait of Hormuz, a narrow waterway through which much of the world's oil passes.
The impact is being felt across industries that rely on diesel. Coach operators in the UK, represented by the Confederation of Passenger Transport, warned that fuel costs have surged to unsustainable levels. Alison Edwards, director of policy at the CPT, said soaring prices would mean "difficult decisions on the availability of services, including home-to-school transport, and the viability of businesses." She noted that 85 per cent of independent coach operators are family businesses and called for government support. Unlike local bus operators in England, which already receive fuel subsidies, coach companies have received no equivalent help.
The haulage sector is under similar strain. Richard Smith, managing director of the Road Haulage Association, said hauliers are paying an extra £350 a week per truck compared with before the Iran war. "It's just unsustainable," he said. "If haulage, coach and van operators can't pass these costs on, they struggle, and we've seen hundreds of transport businesses going bust already this year." Hauliers are calling for a pause on planned fuel duty rises and a rebate to offset diesel costs. The RAC has called for the government to expand its 5p cut in fuel duty, already extended to the end of the year.
In Australia, grain farmers are entering the harvest season facing high diesel prices for the second time this year, after an expensive sowing period. Ryan Milgate, president of the Victorian Farmers Federation, said farmers were "getting a bit of deja vu" as prices head north again. Trucking business owner Dan Russo described high fuel costs as "crippling the trucking industry," adding that the extra costs would inevitably flow on to consumers.
Economists warn that the knock-on effects could push up prices across the economy. Michael Reid, head of US economics at the Royal Bank of Canada, said the surge in diesel prices would be "another squeeze on the consumer," with lower- and middle-income households affected disproportionately. Diesel is the primary fuel for commercial trucks, trains, boats, buses and farm vehicles, meaning higher costs for transporting goods feed through to higher prices for food and other essentials.
Meanwhile, the G7 nations — France, Canada, Germany, Italy, Japan, the UK and the US — agreed on Friday to a "substantial release" of diesel stocks to ease the pressure. The Trump administration had been pressing Europe to release reserves as an alternative to imposing a US export ban. President Trump signed an executive order on Monday temporarily allowing further measures, though details were not immediately available. The White House has also pursued an oil deal with Venezuela, announced in early September, to develop strategic oil fields and boost supplies, though analysts have expressed scepticism about the plan's feasibility.