The cost of diesel fuel in the US continues to rise, nearing the $6 per gallon mark. On Monday, September 7, the price reached a new record of $5.90 (€5.1) per gallon (3.78 L), according to data from the AAA. By Friday, the price had already surpassed the previous 2022 record set after the start of Russia‘s full‑scale invasion of Ukraine.
The impact of war on energy prices
Energy prices surged after heightened tensions between the US and Iran. In response, Tehran blocked the Strait of Hormuz, a key maritime route for oil and gas transport. Following several rounds of hostilities, the resumption of mutual attacks on August 30 further accelerated the increase in energy costs.
New attacks on shipping occurred in the Persian Gulf region over the weekend. Amid reduced maritime traffic, this intensifies the upward trend in energy prices. At the same time, the blockade of the Strait of Hormuz since the start of the tensions has had a particularly strong impact on the prices of refined petroleum products, including gasoline.
Tankers designed for refined petroleum products carry significantly fewer barrels than crude‑oil vessels. As a result, additional transport costs are rising sharply. In late August, TotalEnergies CEO Patrick Pouyanné stated that additional transport costs are reaching about $50 per barrel. “At that level, it simply doesn’t work economically,” he added.
Political risks for Donald Trump
Refineries in the Persian Gulf region have also faced several attacks in recent months. Meanwhile, Ukrainian strikes on Russian oil refineries have led to a reduction in the production of refined petroleum products in Russia.
The energy situation creates additional difficulties for President Donald Trump ahead of the November midterm elections. At the beginning of his presidential term, he promised to lower energy prices. At the same time, Americans are already facing persistent inflation, which, according to the CPI index, stood at 3.4% year‑on‑year in July.
The persistence of high energy costs offers no reason to expect quick relief. Furthermore, companies acknowledge that it is becoming increasingly difficult to pass rising energy costs on to consumers in final prices.
Source: BFMTV
