US Diesel Prices Hit Record High Amid Iran Conflict, Trump Seeks Venezuela Deal

Drivers across the United States are facing record-high diesel prices, with the average cost reaching $5.85 per gallon. This surge is attributed to the ongoing conflict with Iran and Iran's retaliatory actions, including the closure of the Strait of Hormuz, a critical global oil transit route.

The current average price is a significant increase from $3.71 per gallon a year ago and surpasses the previous record set after Russia's invasion of Ukraine. Wholesale oil prices have also climbed sharply since the conflict with Iran began in late February.

In response to the escalating prices, U.S. President Donald Trump has pledged to lower fuel costs for Americans. He announced a new oil deal with Venezuela, which the U.S. reportedly invaded in January, aimed at developing oil fields with a potential of 65 billion barrels.

The agreement, signed on Saturday, involves the development of 17 strategic oil fields. The U.S. government will maintain a 55% stake in a joint venture with a private Venezuelan operator. Venezuela is expected to receive over $100 billion in investment and more than $209 billion in taxes from this venture, according to Venezuela's interim president.

Analysts, however, have expressed skepticism regarding the effectiveness and implications of this agreement. The U.S. administration's move comes as the supply of oil, a key component in diesel fuel, has been restricted due to Iran's actions, particularly its effective closure of the Strait of Hormuz, through which a fifth of the world's oil passes.