Fueled by supply chain interruptions due to war in the Middle East, diesel prices have reached historic highs in 2026, driving up operating costs across many industries and hiking prices for consumer goods. With narrow margins and significant volumes of feedstock to transport, biomass-to-energy facilities and wood pellet producers face a challenging financial equation. In August 2026, average U.S. diesel prices stood at $5.37 per gallon, according to AAA’s fuel price tracker. Supply chain disruptions due to conflict in the Middle East jumped significantly in 2026. U.S. Energy Information Association data has tracked this trend as diesel prices climbed from an average of $3.52 per gallon in January to $4.91 in March. Since then, prices spiked to $5.60 on average in May, rising to a crushing $6.31 national average by mid-September—an all-time record in the United States.