US Diesel Hits $7.22/Gallon Amid Iran War: Amazon Surcharges Squeeze North America Shippers and Carriers

US diesel prices have surged past $5 per gallon nationwide, with California averages hitting $7.22 amid the fourth week of the US/Israel-Iran war and Strait of Hormuz closure, driving crude oil up 47% this month. Amazon's new 3.5% fuel surcharge—averaging $0.17 per FBA unit—is amplifying cost pressures on North American shippers and carriers already grappling with trucking capacity crunches and tariff volatility.

Middle East Conflict Fuels Diesel Crisis

The ongoing US/Israel-Iran conflict, now entering its fourth week, has effectively closed the Strait of Hormuz, through which 20-25% of global oil flows daily. This disruption has propelled crude oil prices up 47% this month, with West Texas Intermediate topping $100 per barrel. Diesel prices followed suit, exceeding $5 per gallon across all US regions as of late March, up nearly $1.57 from early February. California's on-highway average reached $7.22, a 35-cent weekly jump, while the national average hit $5.375—$1.81 higher than a year ago.

Trucking operators are responding aggressively: slowing speeds, minimizing empty miles, and rejecting unprofitable loads. GasBuddy's Patrick De Haan warns of diesel nearing $6 nationally unless the Strait reopens, with Americans already spending $8 billion more on gasoline in the past month alone. Polypropylene prices, critical for plastics in packaging and manufacturing, rose 24%, compounding logistics costs for North American shippers.

Amazon's Surcharge Hits Shippers Hard

Amazon, now the top US delivery provider with 6.7 billion packages last year, rolled out a 3.5% fuel and logistics surcharge directly linked to Iran war costs. This adds an average $0.17 per US Fulfillment by Amazon (FBA) unit, squeezing e-commerce shippers across North America. Carriers gain a rate floor as truck tonnage climbs 2.6% month-over-month—the largest gain in three years—but spot freight rates on east-west trades stay flat as lines prioritize volume amid the chaos.

"Gasoline and diesel prices continue to climb to multi-year highs as the effective closure of the Strait of Hormuz curtails the flow of millions of barrels of crude oil each day."

— Patrick De Haan, GasBuddy Head of Petroleum Analysis

For global North America operators, this means immediate margin erosion. Cross-border trucking to Mexico faces added "tariff noise," with Flexport forecasting persistence into 2026 and Mexican authorities canceling permits for 350 steel importers. Trump's tariff tweaks—50% on pure steel/aluminum/copper, down to 25% on derivatives effective today, April 6—further complicate supply chains.

Trucking Market Strains and Strategic Shifts

North American carriers face a capacity crunch, pushing shippers toward intermodal before truck rates spike further. Union Pacific is resetting intermodal pricing to recapture volume, while manufacturing PMI signals three months of expansion but flags war, tariffs, and price hikes in 17 of 18 sectors. Container lines like CMA CGM are rerouting India-Europe/Med networks due to Persian Gulf disruptions, stranding Gulf-bound containers and delaying India's cabotage reversal.

Infrastructure moves offer glimmers of resilience: Hasbro's new Georgia hub cuts costs and boosts speed; Scan Global Logistics expands into Egypt and Tanzania for Middle East/Africa access; LS Cable & System USA launches a Mexico hub near the Port of Manzanillo; Echo Global Logistics debuts EchoXBorder. Yet labor woes persist—FedEx's Network 2.0 closes centers with layoffs, UPS halts driver buyouts, and Kuehne + Nagel trims UK managers.

Technology Adoption Accelerates Amid Havoc

AI and automation are gaining traction to counter disruptions. FedEx deploys AI with RFID and robotics for network reliability; Freightos cuts 15% headcount for AI shifts; WiseTech Global plans 30% layoffs over two years. Blume Global's AI ocean terminal platform partners with ICTSI, and BravoTran's payables automation goes global via Röhlig. These tools enhance shipper connectivity as project logistics faces "havoc" from transit collapses and infrastructure threats.

For North America-focused players, trucking capacity strains and Amazon's surcharge underscore the need for contingency planning. Intermodal pivots, AI efficiencies, and hub expansions will define winners as diesel pressures persist. Global trade shifts—from Persian Gulf woes to tariff realignments—demand agile strategies to safeguard margins in this volatile environment.

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Fontes: OilPrice.com, TruckingInfo, Supply Chain Dive, FreightWaves, Journal of Commerce, The Loadstar