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US Diesel Prices Drop Below $5 for First Time Since March, Easing Inflationary Pressures

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Diesel prices in the US fell below $5 per gallon for the first time since mid-March, as US-Iran peace talks continued to make progress, helping ease supply constraints.

The national average retail price of diesel dropped to $4.98 a gallon on Wednesday, according to data compiled by the American Automobile Association.

Diesel prices have retreated from their April peak of $5.69 per gallon but remain well above the $3.79 per gallon recorded on the eve of the U.S.-Iran war in late February, according to Bloomberg, suggesting a long way to go before fuel prices can normalize.

This comes following a pullback in global crude oil prices in recent weeks, in response to de-escalating tensions in the Middle East, and rising traffic through the Strait of Hormuz, after a nearly four-month-long blockade.

In a Truth Social post on Tuesday, US President Donald Trump accused the big oil companies of price gouging at the pump, for not reducing prices in line with the fall in global oil prices, while threatening action against the same.

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