(../../../../fm.cnbc.com/applications/cnbc.com/resources/img/CNBC_LOGO_FAVICON_1C_KO_RGB.ico)  Diesel hits record high as Ukraine, Iran wars knock out refineries      (diesel-price-record-high-ukraine-iran-inflation.html)                             (https://image.cnbcfm.com)  (https://static-redesign.cnbcfm.com)   (https://www.cnbc.com/amp/2026/09/04/diesel-price-record-high-ukraine-iran-inflation.html)                   (https://static-redesign.cnbcfm.com/dist/main-f384580fbf7b89fb95eb.js)  (https://static-redesign.cnbcfm.com/dist/54711-1b4b7f27485b536e2300.js)  (https://static-redesign.cnbcfm.com/dist/73154-f72e1b21698ca1449bb2.js)  (https://static-redesign.cnbcfm.com/dist/74430-af231b64f95f9e3d41ae.js)  (https://static-redesign.cnbcfm.com/dist/CNBCGlobalNav-1ef3d9f4f23da797ec6f.js)  (https://static-redesign.cnbcfm.com/dist/components-PcmModule-Ads-TopBanner-d40bf01647eaf56d45bf.js)  (https://static-redesign.cnbcfm.com/dist/components-PcmModule-ArticleHeader-439053a438abbbf01636.js)  (https://static-redesign.cnbcfm.com/dist/components-PcmModule-ArticleInlineMedia-ce4dc323bdf07999c782.js)  (https://static-redesign.cnbcfm.com/dist/89244-92cd1abce03aaa61c9fd.js)  (https://static-redesign.cnbcfm.com/dist/73965-491620d1cc04fe80de0b.js)  (https://static-redesign.cnbcfm.com/dist/components-PcmModule-KeyPoints-c55273c3b6aa04692701.js)  (https://static-redesign.cnbcfm.com/dist/71941-18b74b75c24a23391d7b.js)  (https://static-redesign.cnbcfm.com/dist/components-PcmModule-ArticleBody-c1ba49429e517765810a.js)  (https://static-redesign.cnbcfm.com/dist/93002-ae69b162db78f6308c82.js)  (https://static-redesign.cnbcfm.com/dist/components-PcmModule-ArticleRelatedVideo-2fb52a46c0576d7d9cfa.js)  (https://static-redesign.cnbcfm.com/dist/components-PcmModule-LiveEventModule-8a58dfc853cfadadf1fe.js)  (https://static-redesign.cnbcfm.com/dist/components-PcmModule-WatchLiveRightRail-090a6e7cb78c8cbead15.js)  (https://static-redesign.cnbcfm.com/dist/components-PcmModule-Ads-BoxRail-5b6a2c071c5d8bca4ef9.js)  (https://static-redesign.cnbcfm.com/dist/components-PcmModule-TransporterSection-c042b86ca9cdbf3fdab7.js)  (https://static-redesign.cnbcfm.com/dist/components-Footer-CNBCFooter-b4e61105c5acbfcef431.js)       (diesel-price-record-high-ukraine-iran-inflation.html#MainContent) Skip Navigation    (https://www.cnbc.com/) (CNBC)       (https://www.cnbc.com/markets/)  Markets  (https://www.cnbc.com/pre-markets/) Pre-Markets  (https://www.cnbc.com/us-markets/) U.S. Markets  (https://www.cnbc.com/currencies/) Currencies  (https://www.cnbc.com/prediction-markets/) Prediction Markets  (https://www.cnbc.com/cryptocurrency/) Cryptocurrency  (https://www.cnbc.com/futures-and-commodities/) Futures & Commodities  (https://www.cnbc.com/bonds/) Bonds  (https://www.cnbc.com/funds-and-etfs/) Funds & ETFs     (https://www.cnbc.com/business/)  Business  (https://www.cnbc.com/economy/) Economy  (https://www.cnbc.com/finance/) Finance  (https://www.cnbc.com/health-and-science/) Health & Science  (https://www.cnbc.com/media/) Media  (https://www.cnbc.com/real-estate/) Real Estate  (https://www.cnbc.com/energy/) Energy  (https://www.cnbc.com/climate/) Climate  (https://www.cnbc.com/transportation/) Transportation  (https://www.cnbc.com/cnbc-investigations/) Investigations  (https://www.cnbc.com/industrials/) Industrials  (https://www.cnbc.com/retail/) Retail  (https://www.cnbc.com/wealth/) Wealth  (https://www.cnbc.com/sports/) Sports  (https://www.cnbc.com/life/) Life  (https://www.cnbc.com/small-business/) Small Business     (https://www.cnbc.com/investing/)  Investing  (https://www.cnbc.com/personal-finance/) Personal Finance  (https://www.cnbc.com/fintech/) Fintech  (https://www.cnbc.com/financial-advisors/) Financial Advisors  (https://www.cnbc.com/options-action/) Options Action  (https://www.cnbc.com/etf-street/) ETF Street  (https://buffett.cnbc.com) Buffett Archive  (https://www.cnbc.com/earnings/) Earnings  (https://www.cnbc.com/trader-talk/) Trader Talk     (https://www.cnbc.com/technology/)  Tech  (https://www.cnbc.com/cybersecurity/) Cybersecurity  (https://www.cnbc.com/ai-artificial-intelligence/) AI  (https://www.cnbc.com/enterprise/) Enterprise  (https://www.cnbc.com/internet/) Internet  (https://www.cnbc.com/media/) Media  (https://www.cnbc.com/mobile/) Mobile  (https://www.cnbc.com/social-media/) Social Media  (https://www.cnbc.com/cnbc-disruptors/) CNBC Disruptor 50  (https://www.cnbc.com/tech-guide/) Tech Guide     (https://www.cnbc.com/politics/)  Politics & Policy  (https://www.cnbc.com/white-house/) White House  (https://www.cnbc.com/policy/) Policy  (https://www.cnbc.com/defense/) Defense  (https://www.cnbc.com/congress/) Congress  (https://www.cnbc.com/expanding-opportunity/) Expanding Opportunity     (https://www.cnbc.com/tv/)  Video  (https://www.cnbc.com/latest-video/) Latest Video  (https://www.cnbc.com/live-tv/full-episodes/) Full Episodes  (https://www.cnbc.com/live-tv/) Livestream  (https://www.cnbc.com/live-audio/) Live Audio  (https://www.cnbc.com/live-tv/schedule/) Live TV Schedule  (https://www.cnbc.com/podcast/) CNBC Podcasts  (https://www.cnbc.com/video-ceo-interviews/) CEO Interviews  (https://www.cnbc.com/documentaries/) CNBC Documentaries  (https://www.cnbc.com/digital-original/) Digital Originals     (https://www.cnbc.com/watchlist/)  Watchlist   (https://www.cnbc.com/investingclub/subscribe?__source=investingclub|globalnav|join&tpcc=investingclub|globalnav|join)  Investing Club  (https://www.cnbc.com/investingclub/charitable-trust/) Trust Portfolio  (https://www.cnbc.com/investingclub/analysis/) Analysis  (https://www.cnbc.com/investingclub/trade-alerts/) Trade Alerts  (https://www.cnbc.com/investingclub/video/) Meeting Videos  (https://www.cnbc.com/investingclub/homestretch/) Homestretch  (https://www.cnbc.com/investingclub/jim-cramer-columns/) Jim's Columns  (https://www.cnbc.com/investingclub/education/) Education  (https://www.cnbc.com/investingclub/subscribe?__source=investingclub|dropdownnav&tpcc=investingclub|dropdownnav) Subscribe     (Join IC)   (https://www.cnbc.com/application/pro?__source=pro|globalnav|join&tpcc=pro|globalnav|join)  PRO  (https://www.cnbc.com/pro/news/) Pro News  (https://www.cnbc.com/josh-brown/) Josh Brown  (https://www.cnbc.com/mike-santoli-insight/) Mike Santoli  (https://www.cnbc.com/analyst-calls-of-the-day/) Calls of the Day  (https://www.cnbc.com/my-portfolio/) My Portfolio  (https://www.cnbc.com/live-tv/) Livestream  (https://www.cnbc.com/live-tv/full-episodes/) Full Episodes  (https://www.cnbc.com/pro-stock-screener/) Stock Screener  (https://www.cnbc.com/2023/05/11/market-strategist-survey-forecast.html) Market Forecast  (https://www.cnbc.com/pro/options-investing/) Options Investing  (https://www.cnbc.com/cnbc-pro-chart-investing/) Chart Investing  (https://www.cnbc.com/application/pro/?__source=pro|dropdownnav&tpcc=pro|dropdownnav) Subscribe     (Join Pro)       (https://www.cnbc.com/live-tv/) Livestream         Menu        (https://www.cnbc.com/make-it/) (makeit) Make It   select    (https://www.cnbc.com/?region=usa) USA  (https://www.cnbc.com/world/) INTL       (https://www.cnbc.com/live-tv/) Livestream        Search quotes, news & videos        (https://www.cnbc.com/live-tv/) Livestream       (https://www.cnbc.com/watchlist/) Watchlist   (Show Notifications)      (diesel-price-record-high-ukraine-iran-inflation.html#) SIGN IN      (diesel-price-record-high-ukraine-iran-inflation.html#) Create free account             (https://www.cnbc.com/markets/)  Markets   (https://www.cnbc.com/business/)  Business   (https://www.cnbc.com/investing/)  Investing   (https://www.cnbc.com/technology/)  Tech   (https://www.cnbc.com/politics/)  Politics & Policy   (https://www.cnbc.com/tv/)  Video   (https://www.cnbc.com/watchlist/)  Watchlist   (https://www.cnbc.com/investingclub/subscribe?__source=investingclub|globalnav|join&tpcc=investingclub|globalnav|join)  Investing Club   (Join IC)   (https://www.cnbc.com/application/pro?__source=pro|globalnav|join&tpcc=pro|globalnav|join)  PRO   (Join Pro)       (https://www.cnbc.com/live-tv/) Livestream         Menu             (https://www.cnbc.com/energy/) Energy Diesel hits record high as Ukraine and Iran wars knock out refineries, fueling inflation worries  Published Fri, Sep 4 2026 8:40 AM EDT  Updated Fri, Sep 4 2026 11:10 AM EDT   (thumbnail)  (https://www.cnbc.com/spencer-kimball/) Spencer Kimball  (https://twitter.com/spencekimball) @spencekimball      (https://www.cnbc.com/live-tv/) WATCH LIVE        Key Points Truckers in the U.S. are paying $5.85 a gallon nationwide on average, a nearly 60% increase over the same period last year, when diesel cost $3.71 a gallon.  In California, diesel costs $7.70 per gallon. Diesel is the fuel most embedded in the economy and its high price is heightening inflation worries.        (Global problem in oil but bigger problem in diesel, says Pickering Energy's Dan Pickering)   watch now      VIDEO 3:08 03:08  Global problem in oil but bigger problem in diesel, says Pickering Energy's Dan Pickering (https://www.cnbc.com/power-lunch/) Power Lunch        The price of diesel fuel hit a record Friday as the wars in Ukraine and Iran knock out refineries, triggering a global supply crunch.  Truckers in the U.S. are paying an average of $5.85 a gallon nationwide, a nearly 60% increase over the same period last year when diesel cost $3.71 a gallon. In California, diesel costs $7.70 per gallon, almost $2 a gallon more than the national average.  Diesel prices feed directly into higher inflation, said John Kilduff, partner at Again Capital. "You can do all the virtual shopping you want, it's all going to come to your house on a truck that ran on diesel fuel so there's no way around it," Kilduff told CNBC's "(https://www.cnbc.com/morning-call/) Morning Call ."  Diesel is the fuel that is the most embedded in the economy, more than so than gasoline prices, said Bob McNally, founder of Rapidan Energy. Diesel is used "in transportation, it's in heating fuel, it's in agriculture, it's in industrial uses," McNally told CNBC's "(https://www.cnbc.com/squawk-on-the-street/) Squawk on the Street " on Aug. 17.  "It is the important macro fuel to watch," McNally said.    Higher prices come as Ukraine pounds Russian refineries, forcing Moscow to ban diesel exports. Refineries are also off line in the Middle East due to Iran's attacks on tankers in the Strait of Hormuz and regional energy infrastructure.  The wars have shut down refineries with about 5 million barrels per day of capacity, said (https://www.cnbc.com/quotes/VLO/) Valero Chief Operating Officer Gary Simmons on the U.S. refiner's July 30 earnings call.  "Refining fundamentals are very tight and getting tighter with the issues in Russia and the Mideast," Brian Mandell, executive vice president for marketing at (https://www.cnbc.com/quotes/PSX/) Phillips 66 , said on that refiner's Aug. 5 earnings call.  About 8% of the diesel needed to supply global demand of 28 million barrels per day is disrupted right now, said Andy Lipow, president of Lipow Oil Associates, in an email to CNBC. Russia's diesel export ban affects about 800,000 bpd of supply while the disruptions in the Strait of Hormuz have affected about 1.2 million bpd, Lipow said. Iran's Houthi allies knocked out Saudi Arabia's Jizan refinery that produces about 200,000 bpd, he said. "Diesel is a stealth tax," Lipow said. "The higher fuel cost is passed on to the consumer in the form of higher prices for the goods and services that are delivered by truck and rail." Correction: Brian Mandell is executive vice president for marketing at Phillips 66. An earlier version misspelled the company's name.      (https://www.google.com/preferences/source?q=https://www.cnbc.com/) Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.                      (https://www.cnbc.com/) (CNBC logo)    (https://www.facebook.com/cnbc/)   (https://www.twitter.com/cnbc/)   (https://www.linkedin.com/company/cnbc/)   (https://www.instagram.com/cnbc/)   (https://www.youtube.com/user/cnbc/)   (https://apple.news/T3OtoXcxtRkuHRkM7SpFP_Q)   (https://www.cnbc.com/rss-feeds/)     (https://www.cnbc.com/application/pro/?__source=pro|globalfooter) Subscribe to CNBC PRO  (https://www.cnbc.com/investingclub/subscribe?__source=investingclub|globalfooter) Subscribe to Investing Club  (https://www.cnbc.com/cnbc-reprints/) Licensing & Reprints  (https://www.cnbccouncils.com/) CNBC Councils  (https://www.cnbc.com/select/) Select Personal Finance  (https://cnbcrsh.qualtrics.com/jfe/form/SV_dgRx5X1nYC0YjNI?Origin=cnbc) Join the CNBC Panel  (https://www.cnbc.com/closed-captioning/) Closed Captioning  (https://www.cnbc.com/subscribe/all-access/) Digital Products  (https://www.cnbc.com/cnbc-news-releases/) News Releases  (https://www.cnbc.com/cnbc-internship-program/) Internships  (https://www.cnbc.com/corrections/) Corrections  (https://www.cnbc.com/about/) About CNBC  (https://www.cnbc.com/site-map/) Site Map  (https://www.cnbc.com/podcast/) Podcasts  (https://www.cnbc.com/cnbc-careers-and-employment/) Careers  (https://help.cnbc.com/) Help  (https://help.cnbc.com/contact/) Contact   News Tips Got a confidential news tip? We want to hear from you. (https://www.cnbc.com/news-tips/) Get In Touch   CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox (https://www.cnbc.com/sign-up-for-cnbc-newsletters/) Sign Up Now Get this delivered to your inbox, and more info about our products and services.  Advertise With Us (https://together.nbcuni.com/advertise/?utm_source=cnbc&utm_medium=referral&utm_campaign=property_ad_pages) Please Contact Us   (https://www.versantprivacy.com/privacy/cookies#accordionheader3) Ad Choices  (https://www.versantprivacy.com/privacy) Privacy Policy  (California Consumer Privacy Act (CCPA) Opt-Out Icon)  Your Privacy Choices  (http://www.versantprivacy.com/privacy/california-consumer-privacy-act) CA Notice  (https://www.cnbc.com/terms/) Terms of Service   © 2026Versant Media, LLC. All Rights Reserved. A Versant Media Company. Data is a real-time snapshot *Data is delayed at least 15 minutes.
      Global Business and Financial News, Stock Quotes, and Market Data
      and Analysis.  (https://www.cnbc.com/market-data-terms-of-service/) Market Data Terms of Use and Disclaimers Data also provided by(https://www.cnbc.com/market-data-terms-of-service/) (Reuters logo)            (../../../../zephr-templates.cnbc.com/integration.css)