Diesel hits record $6 a gallon as Houthis take key Red Sea territory - AOL

Frank Andrews
Updated Fri, September 11, 2026 at 1:52 PM EDT

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Diesel prices reached a new record high (Image: Getty)

Diesel prices across the U.S. reached another record high on Friday, climbing above $6 per gallon on average as Washington's conflict with Iran disrupts global fuel supply chains.

The nationwide average of $6.05 represents an increase from $5.85 the previous week and $3.70 from the same period last year, based on motor club AAA data. The war in Iran had already sent fuel prices soaring as Tehran essentially closed the Strait of Hormuz, a critical waterway through which a fifth of the world's oil transits during peacetime.

But as the US and Iran continue to battle for control over that vital shipping route, the Houthis have now reportedly seized control of Bab al-Mandab Strait, another critical waterway.

The Iran-backed militant group took over Yemen's port city of Mokha, an area vital for control of shipping via the Red sea, according to Houthi and Yemeni officials.

The takeover gives Iran another potential point of leverage in its war with the U.S., analysts said, if the Houthis use their presence in Mokha to ramp up threats or attacks on shipping in the Red Sea.

Soaring diesel prices are likely to impact the cost of everyday goods (Image: Getty)

Mokha is about 80 kilometers (50 miles) from the Bab el-Mandeb Strait, a waterway that connects the Red Sea and the Gulf of Aden and through which about 12% of the world's goods are typically shipped.

The Bab el-Mandeb's importance to global oil supplies has grown since shipping through the nearby Strait of Hormuz has been impeded by Iran during its war with the United States and Israel.

The soaring diesel costs in the U.S are likely to have a significant impact on American consumers. Elevated diesel costs translate to pricier transportation for numerous everyday products. That's because diesel powers many freight and delivery operations.

Some companies have already transferred these increased expenses to customers through additional charges on online purchases and shipped packages.

Consumers may experience growing price shock, especially in grocery stores. Fresh items, like meat and produce, face some of the most immediate pressure from costly diesel since they require frequent delivery and restocking, or may be collected using farm machinery running on the fuel.

These expenses can take time to filter through. But the spike in diesel prices shows no signs of subsiding anytime soon.

Pump prices for diesel and regular gasoline - which reached $4.29 on average across the U.S. Friday - track closely with crude oil. And oil has resumed its upward trajectory lately.

This week, both Brent, the global benchmark, and U.S. crude exceeded $100 per barrel for the first time in months as hostilities between the U.S. and Iran intensified once more.

Quick Read

The U.S. national average price of diesel surpassed $6 a gallon for the first time ever on September 10, according to price tracker GasBuddy. In California, five stations posted $9.999 a gallon for diesel, the highest figure their pump systems allow.

GasBuddy analyst Patrick De Haan counted 28 states that hit new all-time diesel highs the same day: AK, AL, AR, CA, CO, FL, GA, IA, ID, KS, LA, MD, MN, MO, MS, NC, ND, NE, NM, OK, SC, SD, TN, TX, UT, VA, WA and WY.

Supply Shock, Four Ways

The U.S.-Israeli war on Iran has disrupted shipping through the Strait of Hormuz, a chokepoint that carried roughly one-fifth of global oil supply before the conflict, according to Reuters. Ukrainian drone strikes have taken Russian refineries offline. Moscow imposed a diesel export ban. Beijing tightened fuel export quotas. Four independent taps on the global distillate pool closed at once.

West Texas Intermediate settled at $97.26 a barrel on September 9, up from $84.57 on August 28. Regular gasoline followed, with the U.S. average at $4.16 a gallon for the week ending September 7. Diesel concentrates the geopolitical squeeze because global distillate supply leans heavily on Russian and Middle Eastern flows now interrupted.

Relief Remains Weeks Away

Refiners are running hard, but distillate inventories are lean heading into fall maintenance season, when U.S. refineries traditionally throttle back to switch product slates. Even if the geopolitical picture stabilized tomorrow, the country would need weeks of sustained runs to rebuild stocks.

Alex Ryan, energy director at Kansas-based fuel supplier Oasis Energy, told Reuters diesel prices have more than doubled in a span of five months, saying it has "rocked our cash flows" and that "there has to be a tipping point, I just don't know when or where it's going to be." Farmers and ranchers, hit by rising input costs while crop prices fell, are among the most exposed.

Everything That Moves Costs More

Diesel powers trucks, freight trains, container ships, tractors, combines, and bulldozers. When the fuel doubles, the cost shows up two or three weeks later in produce, packages, and construction bids. The University of Michigan consumer sentiment index sat at 55.2 in July, below the 60 mark the university treats as recessionary. Retail sales fell 0.6% in July to $763.6 billion.

Midterm Clock Ticks Loudest

This lands eight weeks before the November midterms. A Reuters/Ipsos poll last month found Democrats held an eight-point advantage over Republicans on which party had the better approach to the cost of living. President Trump acknowledged Wednesday that relief from the oil surge may not come until after the election.

Watch over the next four to six weeks whether U.S. distillate stocks build or draw as refiners enter fall maintenance, and whether shipping insurance rates in the Persian Gulf begin to normalize. Both must move before the pump does.