US-Iran Conflict Sends Oil Prices Soaring Ahead of Labor Day
Oil prices surged ahead of Labor Day as the United States and Iran resumed hostilities. The conflict has led to a significant increase in oil prices, with Brent crude pushing past $90 a barrel and West Texas Intermediate crude at more than $86 a barrel.
The latest Middle East strikes are likely to affect gas prices, which have already reached their highest level ever recorded this late in the calendar year. AAA warned drivers will pay more at the pump this holiday than they did last year, with motorists paying an average of $62 for a full 15-gallon tank of gasoline.
President Donald Trump announced an oil deal with Venezuela earlier this month, claiming it would bring gas prices down. However, Patrick De Haan, head of petroleum analysis at GasBuddy, said any benefits from increased Venezuelan output will take years to fully materialize and are unlikely to move the needle in the near term.