California diesel prices rise as Iran war disrupts supply chains

Diesel prices in California have climbed sharply since the war with Iran began, and the effects are spreading beyond the state as higher fuel costs filter through freight and logistics networks. California has some of the highest fuel prices in the country and handles a large share of U.S. container traffic through the San Pedro Bay port complex. Because trucks and trains moving goods nationally often pass through the state, higher diesel costs can raise shipping expenses and the delivered price of everyday products. Analysts say diesel markets are especially tight because of the conflict in Iran and damage to Russian refining capacity linked to the war in Ukraine. The average U.S. diesel price is about $5.36 per gallon, while California’s average is $6.92, up from $5.10 before the war, according to AAA and the article.