Labor Day Gas Prices Soar Amid US-Iran Tensions
Gas prices have increased ahead of the Labor Day holiday weekend, reaching $4.08 per gallon on average nationwide. This marks an increase of one cent from the previous day's price. The rise in gas prices is attributed to a surge in crude oil prices due to renewed tensions between the U.S. and Iran.
The Brent crude oil benchmark has climbed 3.4% to over $91 per barrel, contributing to higher energy prices. The conflict between the two nations has been ongoing since earlier this year, with peace talks stalled and the Strait of Hormuz blocked, a vital oil passageway.
Despite President Donald Trump's announcement of an oil deal with Venezuela, worth more than 65 billion barrels of oil, the U.S. and Iran missed a diplomatic deadline to resolve their conflict. This has led to further instability in the oil market, causing gas prices to rise.