Amid the ongoing Iran war, San Francisco is on the verge of becoming the first city in U.S. history where average diesel prices hit $8 per gallon, GasBuddy’s Patrick De Haan said Saturday.
The city’s average diesel price now sits just cents below that threshold, while California’s statewide average has climbed to $7.63 per gallon. Seven states nationwide are already seeing diesel prices above $6.
Why It Matters
Prior to the war, around 20 percent of global oil supply passed through the Strait of Hormuz, and its effective closure by Iran has resulted in a 95 percent decline in these transits compared to pre-conflict levels.
The blockade has driven up oil prices and domestic pump costs, raising fears that alongside disruption to other shipments—this could soon fuel an economy-wide inflation surge…