U.S. diesel rises above $5.90 a gallon as Iran war adds $100 billion to fuel bills

  • Brown University estimated the Iran war added $100 billion to U.S. fuel spending.
  • U.S. petrol rose 39% to $4.15 a gallon, while diesel exceeded $5.90.
  • California averaged $5.85 a gallon for petrol, the highest state price reported by AAA.

U.S. consumers have paid an estimated additional $100 billion for petrol and diesel during the six months since the U.S.-Israel war on Iran began on February 28, equivalent to roughly $763 for each of the country's estimated 131 million households, Brown University's Watson Institute for International and Public Affairs said. Petrol prices have risen 39% from about $2.98 to $4.15 a gallon, while diesel has climbed more than 60% from $3.67 to $5.90. The increase extends a period of fuel-market stress tied to disrupted traffic through the Strait of Hormuz, reduced Russian refining capacity, export restrictions and weaker Chinese refining output. California has the highest state average petrol price at $5.85 a gallon, followed by Washington, Hawaii, Alaska and Oregon, AAA data show. President Donald Trump has dismissed concerns about higher prices and accused oil companies of price gouging. Higher fuel costs also raise expenses across food production, storage, packaging and transport, increasing pressure on household budgets.

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