Diesel Hits Record $5.85 Ahead of Labor Day

The average U.S. price for diesel climbed to $5.85 per gallon Friday, topping the previous record set in 2022, according to AAA. Regular gasoline averaged $4.15 per gallon the same day, higher than a week earlier and up from $4.09 a month ago.

If prices hold near current levels through the weekend, this Labor Day would be the most expensive for fuel in U.S. history. The prior holiday record was $3.82 per gallon for regular gas, set on Sept. 3, 2012, and AAA data shows the national average has never before topped $4 on the holiday. Axios reported that farmers, truckers and freight companies are absorbing the diesel increase, which raises the cost of moving goods across the country.

The run-up in fuel costs is tied to the military conflict with Iran and uncertainty surrounding the Strait of Hormuz, the Middle East waterway that carries roughly 20% of global oil transport, the Washington Examiner reported. Elevated crude oil prices are keeping pressure on pump prices as holiday travelers begin hitting the road.

The context

Fuel prices have swung widely this year. Regular gasoline hit a five-year low of $2.79 per gallon on Jan. 12, 2026, after President Donald Trump, who campaigned on lowering gas prices, took credit for the decline, the Washington Examiner reported. Prices then climbed sharply, reaching a yearly high of $4.562 per gallon in May. They eased to $3.86 at the end of June -- the lowest since March -- before rising again to $4.06 by the end of July and averaging $4.19 in August, according to the U.S. Energy Information Administration. The Washington Examiner attributed the increases of the past two months primarily to the Iran conflict and geopolitical risk around the Strait of Hormuz. A week before the record, on Aug. 28, Trump announced an oil agreement with Venezuela, posting on Truth Social that the U.S. had entered "THE BIGGEST OIL DEAL IN WORLD HISTORY!" He said the deal involved 65 billion barrels of Venezuelan oil, which would more than double current U.S. reserves.

Why it matters

Fuel prices touch nearly every U.S. household and business. Record diesel costs hit farmers, truckers and freight companies first, but higher shipping expenses tend to flow through to the price of food and other goods nationwide. The timing compounds the impact: the records arrive at the start of Labor Day weekend, one of the heaviest travel periods of late summer, meaning millions of drivers will pay the elevated prices directly. The trajectory also carries political weight for Trump, who campaigned on cheaper gas and saw prices fall to a five-year low in January before the reversal.

What’s next

Whether the weekend sets a Labor Day record depends on prices holding through the holiday; the Washington Examiner noted only a rapid, unforeseen drop would avoid it. Key variables to watch include the course of the Iran conflict and conditions in the Strait of Hormuz, crude oil prices, and whether the Venezuela oil deal Trump announced Aug. 28 affects supply. When any Venezuelan oil would reach the market remains unclear from the material available.