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Gas and diesel prices surge
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
U.S. diesel hit $5.78 a gallon Thursday, near its record, as gas reached $4.14.
Higher fuel costs squeeze consumers and businesses, with no relief in sight.
Background
Fuel prices are surging due to conflict in the Strait of Hormuz, Russian export bans, and refining bottlenecks. Diesel is near its all-time high, and gasoline prices are the highest ever for this time of year, just before Labor Day.
How it unfolded
- late Feb 2026War with Iran began, leading to higher oil prices and subsequent fuel cost increases.
- Aug 2026National average gasoline stayed above $4 per gallon every day, making it the most expensive August on record.
- Sep 1, 2026Washington state diesel averaged $6.52 per gallon, with Seattle gas at $5.57.
- Sep 3, 2026National diesel averaged $5.78 per gallon, just below the record; gas averaged $4.14. Brent crude touched $97 per barrel.
- Sep 4, 2026Guardian reports farmers face 'astronomical' fuel price surge in UK and US.
Who’s saying what
- AAA
- Even though gasoline demand decreases this time of year, high crude oil costs are keeping prices up.
- Analysts
- Only higher Persian Gulf flows or resumed Russian exports could bring meaningful relief.
- GasBuddy
- Motorists should expect continued volatility in the weeks ahead.
- Political
- Democrats see an opportunity in red states as diesel prices hit rural areas first, but they may fail to capitalize.