Gas Prices Hit New Labor Day Record Amid Iran Tensions

The national average gas price has reached $4.14 per gallon ahead of Labor Day weekend, marking a new record for the holiday. According to AAA, this is the first time gas prices have topped $4 on Labor Day. The previous high was set in 2012 at $3.82 per gallon.

The high prices are attributed to ongoing volatility surrounding the Iran war and the Strait of Hormuz, which has kept crude oil prices elevated at around $90 a barrel. This uncertainty has pushed gasoline prices higher despite declining demand following the summer driving season.

President Donald Trump's comments on renaming the Strait of Hormuz to 'Trump Strait' have also added to concerns about global energy supplies and further exacerbated the situation.

GasBuddy's Patrick De Haan notes that drivers may see some relief after Labor Day as gasoline demand declines and much of the country transitions to cheaper winter-blend fuel. However, he warns that global tensions and uncertainty over oil supplies have played a greater role in gas prices this year than typical supply-and-demand factors.