--- title: "Gasoline and diesel prices surge in the United States since February's US-Israel conflict with Iran began" url: https://noti.group/gasoline-and-diesel-prices-surge-in-the-united-states-since-february/ language: en publisher: "Noti Group" section: "Business" published: 2026-10-09T04:55:14.000Z updated: 2026-10-09T10:56:32.926Z id: 1e556033-86a8-4b46-a021-528414658921 source: "BBC News Business https://www.bbc.co.uk/news/articles/cv2d6x749lwro?at_medium=RSS&at_campaign=rss" attribution: "Link to https://noti.group/gasoline-and-diesel-prices-surge-in-the-united-states-since-february/ and name Noti Group when you quote or summarize this story." --- # Gasoline and diesel prices surge in the United States since February's US-Israel conflict with Iran began The sharp increase has had far-reaching consequences for various sectors, including transport businesses and farmers who rely on fuel to operate. Gasoline and diesel prices have skyrocketed in the United States since February's US-Israel conflict with Iran began, more than doubling in just a few short months. The surge has had far-reaching consequences for various sectors, including transport businesses and farmers who rely on fuel to operate. US President Donald Trump has been under pressure from voters ahead of the critical midterm elections to take action on soaring gas prices. As election day draws near, Trump has made several public comments and announcements aimed at addressing this pressing issue. His latest move was a waiver allowing the use of red dye-free diesel at a recent campaign stop. The importance of affordable fuel in the midterms cannot be overstated. Affordability is a top concern for many voters, and gas prices are now tied directly to Trump's performance as President. Republicans running in November are facing an uphill battle due to widespread public dissatisfaction with the economy and Trump's handling of international conflicts, particularly the war in Iran. The conflict has severely restricted global oil supplies, as usual shipping routes through the Strait of Hormuz have been disrupted for months. This has led to a sharp increase in diesel and gas prices across the US, affecting not just consumers but also businesses reliant on affordable fuel to operate. Public opinion polls show that a majority of Americans disapprove of Trump's handling of both the economy and the war in Iran, which has contributed significantly to the current fuel price crisis. High oil prices persist despite increased crude flow from pre-war levels, with a barrel still costing over $100. The ongoing conflict in Ukraine has also disrupted oil supplies, contributing to higher fuel costs according to David Ruisard, pricing manager for Argus. Ruisard's estimates suggest that 60% of the recent diesel price increase can be attributed to the Strait of Hormuz crisis, while 40% is due to the Russia-Ukraine conflict. This breakdown highlights the multiple factors driving up energy prices. Higher energy costs have been a major contributor to inflation this year, with Oxford Economics chief US economist Michael Pearce attributing most of the uptick in inflation to rising energy prices. As a result, interest rates have also increased. The cumulative effect of higher interest rates and energy prices is taking its toll on household budgets and businesses alike, according to Pearce. These added costs are squeezing firms' expenses and limiting consumer spending power. Modest declines in gasoline and diesel prices have been observed recently, with Patrick De Haan attributing this trend to the Trump administration's recent policy moves. The president's decision to allow red dye diesel to be used on US highways without federal levies may also be contributing to these price drops. The distinction between diesel used by truck drivers and everyday consumers, and the tax-free red dye diesel, lies in its coloring agent rather than any fundamental difference in composition. Truckers who opt for this dyed diesel face significant challenges when the temporary tax relief expires. They must then remove the colorant from their fuel tanks, a process that is notoriously difficult due to the dye's stubborn properties. This creates a daunting prospect for trucking companies, which are already burdened with hefty fines if they fail to eradicate the red dye from their fuel tanks. These penalties can be crippling for businesses operating on thin profit margins. The sudden shift in consumption patterns that would result from expanded use of red dye diesel also poses a problem. When people and companies - including rail operators - stock up on this product, they set aside a specific amount for future use. If demand suddenly surges, their available supply dwindles rapidly. Meanwhile, another Trump initiative has been more successful in reducing fuel prices. The G7 countries have agreed to release 100 million barrels of oil and diesel from their emergency reserves. Energy experts warn that even if exports from the Gulf region return to normal, the strain on global oil supplies will persist for a while. The disruption in energy exports from the Gulf has led to a shortage of stocks, forcing countries to tap into their emergency reserves to meet demand. As long as this situation continues, it is likely that energy prices will remain high for an extended period, even after the Middle East crisis subsides. This means that any short-term measures taken by Trump to reduce fuel costs may not have the desired impact on consumers. The federal tax on gasoline is a significant contributor to the cost of filling up at the pump, and suspending or reducing it would require Congressional approval. The proposal by the US President to reduce fuel costs through executive action has been met with skepticism from energy experts. They argue that such measures would have limited impact on the overall price of gasoline. According to De Haan, the president's actions so far have only marginally affected prices, and more substantial changes are needed to bring down costs. He believes that resolving geopolitical tensions is crucial in reducing fuel prices, specifically addressing issues with Iran and facilitating an agreement between Ukraine and Russia. Reaching a deal on these fronts would be essential in stabilizing energy markets and reducing the price of gasoline. However, even if such agreements were reached, it could take several months for production to return to normal due to damage caused by military strikes in the Middle East. The consensus among experts is that high fuel prices are here to stay for some time, regardless of any actions taken by the White House. --- Source: [BBC News Business](https://www.bbc.co.uk/news/articles/cv2d6x749lwro?at_medium=RSS&at_campaign=rss) Published by Noti Group: https://noti.group/gasoline-and-diesel-prices-surge-in-the-united-states-since-february/