US-Iran Tensions Send Gas Prices Soaring Ahead of Labor Day
As the Labor Day holiday weekend approaches, gas prices are on the rise. According to AAA, the national average for a gallon of regular gas has increased to $4.08, up one cent from the previous day. This increase coincides with a rise in crude oil prices due to renewed tensions between the U.S. and Iran.
The price of Brent crude, the international oil benchmark, climbed by 3.4% this morning, reaching just over $91 per barrel. The escalation in energy prices follows stalled peace talks between the U.S. and Iran, as reported by The Guardian. The ongoing conflict has kept energy prices high since the U.S.-Israel war with Iran began earlier this year, blocking the Strait of Hormuz, a vital oil passageway.
On Friday, President Donald Trump announced a significant oil deal with Venezuela, describing it as 'the biggest oil deal in world history' for more than 65 billion barrels of oil. However, despite this development, the U.S. and Iran missed a diplomatic deadline to resolve their conflict, leading to further instability in the oil market.