Diesel hits a record $6.51 a gallon as Grassley urges Trump to ban exports

Diesel averaged $6.51 a gallon nationally on Monday, a record according to AAA, up nearly a dollar in a month and up from $3.69 a year ago. Gasoline averaged $4.47, up more than a dollar from last year's $3.18.

The squeeze is landing on farmers first. Iowa Sen. Chuck Grassley, a Republican, spent the weekend publicly demanding that President Donald Trump embargo diesel exports — pointing to $6.57 diesel in his state and invoking the agricultural export embargoes presidents imposed in the 1970s when food prices spiked. "High diesel prices ARE KILLING FARMERS INCOME," Grassley wrote on X Saturday, followed by two more posts Sunday urging Trump to put "AMERICA FIRST."

The White House said Monday the administration does not plan to ban or restrict diesel exports.

The price surge is tied to the ongoing U.S. conflict with Iran, which has closed the Strait of Hormuz to petroleum shipping. With midterm elections approaching, Republicans in tight races are pulling away from the president's war. Seven House Republicans broke ranks last week to vote for stopping the conflict unless Congress authorizes further action, including two vulnerable Iowa representatives, Zach Nunn and Mariannette Miller-Meeks.

Senate Democrats plan to force a War Powers Resolution vote this week. Sen. Tim Kaine of Virginia said he will push a vote "every week until we succeed" to end what he called an illegal war. Two Republicans who will not return to Congress next year — Rep. Thomas Massie of Kentucky, who introduced articles of impeachment against Defense Secretary Pete Hegseth last week, and Sen. Thom Tillis of North Carolina, who told reporters Hegseth "needs to go" — have also spoken against Pentagon leadership during the conflict.

Fuel is driving broader inflation. The Bureau of Labor Statistics reported that gasoline and fuel oil costs rose 3.9% from July to August, and all energy commodities and services were up 16.3% over the past 12 months.

Trump told Fox News on Sunday he is "open" to meeting Iranian President Masoud Pezeshkian this week at the United Nations General Assembly. He said he is in "deciding mode" about next steps and that "big things" will happen soon.

On Monday Trump blamed Russia's war in Ukraine for the diesel spike, saying Russian refineries have been knocked out by strikes. Vice President JD Vance told reporters the administration is "doing everything we can" to reduce energy prices and suggested states suspend gas taxes. He attributed elevated prices to Iran "terrorizing international shipping."

The conflict has also widened. Iran-backed Houthi rebels in Yemen are fighting for control of the Bab al-Mandab Strait, a route for Saudi oil exports. The State Department warned U.S. citizens in the Middle East on Saturday to "keep a low profile" and prepare for possible flight cancellations and airspace closures.