The average price for a gallon of diesel in the United States has surged to an all-time high of $5.85, significantly exceeding last year's average of $3.71. This increase surpasses the previous record set after Russia's full-scale invasion of Ukraine, according to the American Automobile Association (AAA).
Fuel prices began to climb sharply following the escalation of conflict involving Iran at the end of February, a trend mirrored by rising wholesale oil prices. In response to the soaring costs, President Donald Trump has announced a commitment to substantially lower gas prices for Americans through a new oil agreement with Venezuela. The deal, finalized on Saturday, outlines the development of 17 strategic oil fields with an estimated 65 billion barrels of proven reserves. The agreement also includes provisions for over $100 billion in investment and more than $209 billion in taxes for Venezuela, according to Interim Venezuelan President Delcy Rodríguez.
A U.S. official stated that the U.S. government would hold 55% control in a joint venture with a private operator in Venezuela. However, some industry analysts have expressed skepticism, questioning whether the agreement will overcome the long-standing obstacles that have historically deterred investment in Venezuela's oil sector.
The global oil supply has been affected by Iran's response to the ongoing conflict, which has led to restrictions on shipping through the Strait of Hormuz, a critical waterway through which approximately one-fifth of the world's oil is transported.
The dramatic rise in pump prices has generated significant discontent among U.S. voters in the months leading up to the November midterm elections. Recent polling indicates a drop in President Trump's approval rating to 33%, with only 31% of Americans approving of the current conflict.
Price increases are not uniform across the country. Data from AAA shows that drivers in Western states are experiencing higher prices than those in other regions, attributed to factors such as tax differences and the distance from U.S. oil production centers. For instance, average diesel prices in Washington have reached $6.81 per gallon, an increase from $5.03 a year ago.
In addition to diesel, Americans are also contending with historically high gasoline prices, with the average price per gallon reaching $4.15, compared to $3.20 at this time last year.