Labor Day Gas Prices Reach Record High as Iran Conflict Drives Oil Costs

As Labor Day approaches, Americans are facing the most expensive gas prices on record. The national average for regular gasoline has reached $4.14 per gallon, up about 4 cents from last week and nearly 95 cents higher than a year ago.

The unusually high prices come despite the fact that gasoline demand typically falls after the peak summer driving season. However, elevated crude oil prices tied to the conflict involving Iran have kept prices near $90 a barrel, preventing the seasonal decline in gas prices motorists usually see after Labor Day.

According to AAA, nearly 40 million Americans are expected to drive over the holiday weekend, making this the most expensive Labor Day at the pump ever recorded. The national average is expected to shatter the previous record of $3.82, set in 2012, and mark the first time the national average has exceeded $4 per gallon during the holiday weekend.