Americans hitting the road for Labor Day weekend are facing historically high prices at the pump, with the holiday on track to set a new record. The national average climbed to about $4.14 per gallon on Thursday, according to AAA, up from a day, week and month earlier. The national average has never topped $4 on Labor Day, AAA said in a release Thursday.
The previous holiday high of $3.82 was set on September 3, 2012. Continued volatility surrounding the Iran war and the Strait of Hormuz has helped keep crude oil prices elevated. Crude has remained around $90 a barrel amid the uncertainty, pushing gasoline prices higher even as demand typically begins to ease following the summer driving season.
The rising prices come as the conflict with Iran continues, with renewed fighting and disruptions around the Strait of Hormuz adding to concerns about global energy supplies. Oil prices jumped sharply earlier this week as the latest U.S.-Iran escalation raised fears of further supply disruptions. President Donald Trump has also floated renaming the waterway the “Trump Strait” while claiming the U.S. has control over it, underscoring how central the strategic chokepoint has become to the conflict—and to the outlook for energy prices.
GasBuddy said drivers could see some relief after Labor Day as gasoline demand declines and much of the country transitions to cheaper winter-blend fuel. De Haan said global tensions and uncertainty over oil supplies have played a greater role in gas prices this year than typical supply-and-demand factors. Newsweek reached out to the White House for comment via email outside of normal business hours.
According to AAA, the following were the states with the highest and lowest gas prices as of Thursday, September 3: The surge in gas prices comes just two months before the midterm elections, with the economy remaining a top concern for voters. A majority of Americans say gas prices are rising where they live, according to an Economist/YouGov poll conducted from August 28 to 31. Among respondents, 62 percent said gas prices were going up, including 29 percent who said they were going up a lot.
Another 16 percent said prices were not changing, while 15 percent said they were going down and 7 percent were unsure. The poll surveyed 1,592 U.S. adult citizens. Contact Newsweek editors on this story: Gray R.
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