US Gas Prices Hit Record High as Iran Conflict Continues

Gasoline prices have hit a record high for Labor Day, with the national average price of regular unleaded gas reaching $4.15 per gallon on Monday.

This surpasses the previous record of $3.82 set in 2012 and is 30% higher than the average price of $3.20 drivers were paying a year ago, according to AAA.

The high prices are due to elevated crude oil costs, which have offset the seasonal trend of declining gasoline demand after the summer driving season.

West Texas Intermediate crude oil futures were trading at around $92 per barrel on Monday, up from about $67 before the Iran War started in February.

Refineries have also been taken offline due to conflicts in the Middle East and Russia, reducing supply that reaches the market.

However, the transition to winter-blend gas in September may provide some relief at the pump, as it is generally cheaper to produce.