Gas Hits Record $4.15 on Labor Day as Iran War Strains Oil Supply

Gas prices in the United States hit an all-time high for Labor Day weekend, with the national average reaching $4.15 per gallon on Monday, September 8. That is nearly a dollar more than Labor Day 2025 and 33 cents above the previous record of $3.82 set in 2012. The surge stems from the six-month-old Iran War, which has blocked crude oil shipments through the Strait of Hormuz and pushed West Texas Intermediate crude to $92 per barrel, up from $67 before the conflict began in February.

Why prices spiked this Labor Day

The U.S. and Israel attacked Iran in February, and crude oil traffic through the Strait of Hormuz has plunged since then. Iran has refused to reopen the waterway. An estimated 4.9 million barrels of crude oil and petroleum liquids moved through the Strait daily in the second quarter, a sharp drop from pre-war levels. Tom Seng, a professor of energy finance at Texas Christian University, said “Everything points to the Iran War and the Strait of Hormuz.”

Diesel prices hit record high, raising costs for goods

Diesel reached $5.90 per gallon on Monday, a record. Trucks and freight systems rely heavily on diesel, so the spike is raising transportation costs for groceries, packages, and other goods. Fruits, vegetables, meat, and perishables that require frequent restocking or diesel-powered farm equipment are feeling the pressure first. Retailers and delivery companies have already begun passing these costs to consumers through higher prices and shipping surcharges.

What drivers are doing differently

Families are canceling road trips and vacations. Nicole Collins planned to drive from Philadelphia to South Carolina to visit friends but stayed home instead because driving has become too expensive. Linda French, a 78-year-old retired teacher in Tennessee, canceled a trip to New York to see her recovering brother and great-nieces and nephews. AAA data shows that gas demand has not dropped as it normally does after summer, because elevated crude oil costs have offset the seasonal decline. Flights and hotels also cost more this Labor Day: round-trip flights were 2% higher and hotel stays 9% higher than last year.

When relief might come

Energy Secretary Chris Wright offered no timeline for lower prices on Sunday, saying only that the administration is “doing everything we can to push them down.” AAA spokeswoman Brittany Moye noted that gasoline demand typically falls after summer driving season, which usually leads to lower prices, but this year’s crude oil costs have prevented that drop. Crude oil remains constrained globally as tankers struggle to transit the Strait of Hormuz. The national average is still below the all-time record of $5.02 per gallon set in June 2022, but diesel has already surpassed its previous highs.

Final Thoughts

Gas prices at $4.15 per gallon are the highest ever for Labor Day, driven by Iran War disruptions to global oil supply. Diesel at $5.90 is raising transportation and grocery costs. No relief timeline is in sight from the Energy Secretary.

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