USO rises 1.2% as diesel prices hit record highs
The United States Oil Fund rose 1.2% to $143.69 after diesel prices hit a Labor Day record national average of $5.87, with expectations for further gains as the Iran war continues.
Diesel prices hit record highs over the Labor Day holiday alongside record gas prices for consumers. A leading expert thinks both prices could continue to go higher as the war with Iran wages on, including diesel prices hitting an unthinkable amount. 87, and that could be just the beginning of a rally heading into the winter months. The higher prices could lead to higher costs for transportation companies and prompt a decision about whether to pass those costs on to consumers.
While the national average is around $6 per gallon at the time of writing, some areas are seeing higher rates. The state of California is near $8 per gallon, prompting market expert Patrick De Haan to imagine a worst-case scenario. "The real story may be out West — California could blow past $8/gal, and some pumps aren’t even built to display what could come next," De Haan tweeted. What De Haan is referring to is the possibility of $10 per gallon in states like California.
Current displays at most gas stations likely only have the capacity for single digits and two decimal places, which means a diesel price of $10 per gallon would require finding a way to display it. This author remembers when the price of regular gasoline hit $2 per gallon in Michigan. 99. This led to custom tape jobs on gas station signs to show a price higher than $2.
Diesel prices are already weighing on consumers, the economy and the minds of voters. Hitting the $10 level in any state and seeing images of customized signs could further dampen things. S. 19 per gallon.
Read Also: 15 States Hit Hardest by Gas Price Spike Since the Iran War: Is Yours One? Higher Gas Prices Impact Consumers Previously, regular gas prices were in the headlines, but now, due to new records, diesel prices are. " While higher diesel prices may not impact consumers directly right away, it could have a trickle-down effect from companies raising prices, similar to what tariffs caused earlier this year. 09 on Labor Day.
Regular gas has a much more direct impact on consumers, with higher prices at the pump, meaning some changes are being made. Earlier this year, consumers said they were considering spending less money at restaurants or on groceries to offset the higher prices at the gas pump. Consumers were also spending more time at warehouse locations like Sam’s Club and Costco to get cheaper gas prices as a membership perk. President Donald Trump recently said that the price of gas could fall back to $2 per gallon when the war with Iran is over.
There is no timetable on when this could happen and right now consumers are likely to continue to feel the impact of both regular gas and diesel prices rising. 09. 4% year-to-date in 2026. Read Also: Gas Prices Searches Hit Four-Year High On Google: Uber Offers Drivers $4,000 To Switch To EVs Image via Shutterstock