U.S. diesel price tops $6 per gallon, a record high as Ukraine and Iran wars ripple through economy

Diesel tops $6, record high as Ukraine and Iran wars ripple through economy Skip Navigation Markets Business Investing Tech Politics & Policy Video Watchlist Investing Club PRO Livestream Menu Key Points Diesel prices will be a "silent killer of the U.S. economy" if they stay at these levels, said Patrick De Haan, head of petroleum analysis at GasBuddy. Higher diesel prices are passed down to consumers in what they pay for food, consumer goods and energy. The fuel is used to transport goods by truck and train. Fuel costs are rising as the Iran and Ukraine wars have knocked out refineries. In this article @LCO27G Follow your favorite stocks CREATE FREE ACCOUNT watch now VIDEO 3:30 03:30 Higher diesel prices will be a secret killer of the U.S. economy, says GasBuddy's Patrick de Haan Power Lunch U.S. diesel prices hit $6 per gallon on Friday for the first time ever, as fuel supply disruptions triggered by the Ukraine and Iran wars raises transportation costs across the entire economy. Truckers and farmers are paying about 63% more to fill up their semis and tractors than they did at this time last year, according to data from AAA. The average price nationwide is now $6.0556 per gallon. Prices are even higher in California, the biggest agriculture state in the U.S., at $7.9827 per gallon. Fuel costs are rising as crude oil prices have surged in response to a sharp escalation in fighting between the U.S. and Iran this month. U.S. crude oil futures topped $100 per barrel on Thursday for the first time since May. The contract has gained about 20% in September. Diesel is the real lifeblood of the economy even though consumers tend to pay more attention to retail gasoline prices, said Bob McNally, president of Rapidan Energy, in an interview with CNBC's "The Exchange" on Tuesday. Higher diesel prices are passed down to consumers in what they pay for food, consumer goods and energy. Diesel fuels the trucks, trains and ships that bring goods to market. It powers the machinery that farmers use to plant and harvest food. And it heats homes and generates electricity in some cases. "It's the more insidious, more costly, and more impactful fuel," McNally said. "As we climb higher, it is a real concern." watch now VIDEO 0:40 00:40 National average price for diesel reaches $6 per gallon, according to GasBuddy Closing Bell: Overtime Diesel prices at these levels will be a "silent killer" for the economy, said Patrick De Haan, head of petroleum analysis at GasBuddy, in an interview with CNBC's " Power Lunch " Tuesday. Gasoline prices, meanwhile, have never been this high this late in the year, De Haan said. Prices at the pump hit a Labor Day record of $4.15 per gallon earlier this week. Americans are spending about $700 million more per day on gas and diesel than they did a year ago, the analyst said . "There's sticker shock there for consumers," De Haan said. Fuel costs are rising as the Iran and Ukraine wars have disrupted global supplies. Kyiv has pounded Russian refineries, forcing Moscow to ban diesel exports. Iran and its militant Houthi allies in Yemen have also hit the refineries of U.S. Gulf allies. Fuel exports through the Strait of Hormuz are constrained due to the Iranian attacks on tankers. The wars in Eastern Europe and the Middle East have shut down refineries with about 5 million barrels per day of capacity, said Valero Chief Operating Officer Gary Simmons on the U.S. refiner's July 30 earnings call. The world has lost nearly 8% of its diesel supply with little spare refining capacity available to make up the shortfall, said Andy Lipow, president of Lipow Oil Associates, in a Wednesday note. Rising diesel prices pose an "enormous challenge" for the Trump administration, said Helima Croft, head of global commodity strategy at RBC Capital Markets, in a Sept. 4 interview with CNBC's "Power Lunch." "U.S. refineries are running at 98% utilization rates — there is just no spare capacity," Croft said. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.