Fuel Prices Surge on Iran War, Pose Growing Risk to U.S. Economy as Diesel Hits Record $6.51

U.S. gasoline averaged $4.48 a gallon on Monday, up from $2.98 in February, as the war with Iran disrupts crude supplies through the Strait of Hormuz and damages Middle East energy facilities. The national average remains below the June 2022 record of $5.02 but has climbed daily for two weeks, nearing the 2026 high of $4.51. Diesel has surpassed its 2022 record, hitting $6.51 a gallon as of Monday, up from $5.81. Because diesel underpins production and transportation, the increase threatens to ripple through the economy and stoke inflation. The Federal Reserve has raised rates to counter price pressures. The Energy Information Administration projects gasoline at $3.95 by year-end, though GasBuddy analyst Patrick DeHaan called the outlook "deeply uncertain." Falling oil prices Monday followed a report that President Donald Trump was open to meeting Iran's president at the United Nations. Economists warn that prolonged high fuel prices pose mounting risks to the broader U.S. economy.