Diesel Prices Soar, Hitting Truckers and Consumers Hard

Closure of Strait of Hormuz leads to spiking shipping, fertilizer, and aluminum costs, compounding economic pain

Mar. 26, 2026 at 10:07pm

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As oil prices rise due to the closure of the Strait of Hormuz amid the ongoing war in Iran, diesel fuel prices have skyrocketed, hammering the wallets of truck drivers and consumers alike. The average price of diesel in Chicago has jumped over a dollar in just one month to $5.37 per gallon, forcing truckers like Faustino Pazos to regularly spend $200-$300 to fill up their vehicles. This increase in fuel costs is being passed on through the supply chain, raising prices on everything from groceries to airline tickets.

Why it matters

Diesel fuel is a critical input for the transportation of goods across the US economy, with the costs factored into the price of nearly every product consumers buy. The spike in diesel prices is compounding broader economic pressures from the war, including higher shipping, fertilizer, and aluminum costs, that are contributing to rising inflation and the potential for a broader economic slowdown.

The details

Truck drivers like Faustino Pazos are bearing the brunt of the diesel price surge, with the cost of filling up their vehicles jumping dramatically in recent weeks. The higher fuel costs are then passed on through the supply chain, with the produce Pazos delivers seeing price increases at each step - from the farm, to processing facilities, to distribution warehouses, and finally to retail stores.

  • The average price of diesel in Chicago has risen over $1 in the past month, from around $4.30 per gallon to the current $5.37 per gallon.
  • The closure of the Strait of Hormuz, a key global oil chokepoint, began at the start of the war in Iran in early 2026.

The players

Faustino Pazos

A truck driver in Chicago who regularly spends $200-$300 to fill up his vehicle with diesel.

Michael Negron

A former economic policy advisor in the Biden administration, who notes that the closure of the Strait of Hormuz is leading to spiking shipping, fertilizer, and aluminum costs.

Dan Varroney

An economic strategist and author who says energy prices run through the entire economy, and that an end to the war will likely bring down energy prices, but not immediately.

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What they’re saying

“In the city of Chicago, it's a headache. Fuel prices are murder.”

— Faustino Pazos, Truck Driver

“The closure of the Strait of Hormuz is leading to spiking shipping, fertilizer, and aluminum costs, which will combine with higher energy prices to raise prices across the economy, from the costs of groceries to airline tickets to utility bills and more.”

— Michael Negron, Former Biden Administration Economic Policy Advisor

“Energy runs through everything in our economy. When the price of it goes up, we pay for it. When energy goes down, we don't pay as much for it.”

— Dan Varroney, Economic Strategist and Author

What’s next

Varroney said an end to the war will likely bring down energy prices, and in turn, the cost of food and other goods, but not immediately. He said we could see some price relief 6-to-12 weeks after the end of hostilities and the re-opening of the strait. However, he is cautioning that consumers may not see any real price reductions until the end of the year.

The takeaway

The spike in diesel prices, driven by the closure of a key global oil chokepoint, is compounding broader economic pressures and contributing to rising inflation across the US. While an end to the war could eventually bring relief, consumers are likely facing several more months of high prices for fuel, food, and other goods before seeing any meaningful reductions.