The average price of diesel topped its 2022 record high on Friday , spiking to $5.85 per gallon, per AAA .
Why it matters: Farmers, truckers and freight companies have been absorbing higher diesel costs since the Iran war began. The ballooning price threatens to further raise shipping costs while compounding a growing political problem for President Trump .
Driving the news: Diesel has been rising steadily for weeks, but surged 17 cents in just the last two days.
Worth noting: While the strangling of the Strait of Hormuz cast the global market into disarray, Ukraine's highly effective drone campaign targeting Russian refineries has further strained worldwide diesel refinery capacity.
The big picture: "Diesel is an input to virtually everything we consume," says Erich Muehlegger, an economics professor at the University of California-Davis.
Zoom out: Diesel also fuels the country's trucking fleets. While large carriers like FedEx and UPS have increased their fuel surcharge rates to account for the spiking prices, smaller businesses are more sensitive to volatility.
This time of year , the U.S. would usually see significant increases in diesel inventory ahead of the fall refinery maintenance season, Jason Miller, a professor in supply chain management at Michigan State University, told Axios.
Reality check: Fuel costs are just a fraction of overall prices consumers see, Muehlegger notes.
What we're watching: If those price hikes show up in core goods down the line, rather than just retail gasoline or electricity prices, that could make it harder for the Federal Reserve to justify cutting interest rates or even push rates higher.
Go deeper: Here's how to understand crude oil costs and what they mean for gas prices
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