US diesel prices have surged to almost $5 a gallon, marking the highest level since Russia's invasion of Ukraine in 2022. The 37% price jump over the past month follows US-Israeli strikes on Iran that have choked energy supplies through the Strait of Hormuz, according to motor club AAA. This sudden spike threatens to push up costs across the economy.

Energy economist Ed Hirs notes the price surge is unlikely to reverse soon, saying only ending the conflict can stabilize markets. The diesel crisis is already hitting truckers hard, with smaller operators like Strong Pact Trucking facing an extra $750 per week in fuel costs. Farmers are particularly vulnerable as spring planting season begins, relying on diesel for tractors, combines, and transport vehicles.

US farmers spent nearly $10 billion on diesel in 2024, and the current squeeze comes as they already face high fertilizer costs, low commodity prices, and export market uncertainty from tariffs. The American Farm Bureau Federation reports bankruptcies rose 46% in 2025. Industry experts say the crisis is compounded by aging US refineries that are better equipped for Venezuelan and Canadian crude than domestic oil. While Trump recently announced plans for a new refinery in Texas, closures continue elsewhere, highlighting America's refining capacity challenges.