US gasoline prices reached a record Labor Day average of $4.15 a gallon on Monday, as oil supply disruptions linked to the Iran war kept crude prices elevated and limited fuel availability across the country.
The national average for regular gasoline was the highest ever recorded for the holiday, according to AAA. The previous Labor Day record was $3.82 a gallon, recorded on September 3, 2012. The latest increase comes during one of the busiest road-travel periods in the US, adding to the cost of holiday journeys for motorists.
Although pump prices have fallen from the 2026 peak of $4.56 a gallon recorded in May, Monday’s average remained about 30% above the roughly $3.20 a gallon recorded around the same period last year. Gasoline demand typically eases after the summer driving season, which usually helps push prices lower. That seasonal decline has not occurred normally this year because crude oil remains expensive, Brittany Moye, a spokesperson for AAA, said in comments cited in the report.
West Texas Intermediate, the main US oil benchmark, was trading at about $92 a barrel on Monday, compared with approximately $67 a barrel before the Iran war began on February 28. Brent crude, the international benchmark, was around $97 a barrel, up from roughly $72 before the conflict, according to the report.
The Strait of Hormuz has become a central pressure point for global oil supplies. Tankers have faced difficulties passing through the waterway during the conflict, reducing the amount of crude and petroleum liquids moving through one of the world’s most important energy routes. About 4.9 million barrels a day travelled through the strait during the second quarter of this year, according to US Energy Information Administration data cited by CNBC. That compared with approximately 21.6 million barrels a day in the fourth quarter of 2025, before the conflict began.
Supply constraints have also affected refineries. Facilities in several regions have been taken offline because of the Iran war and the Russia-Ukraine war, reducing the amount of gasoline reaching the market. US gasoline inventories were 6% below the average for the week ending August 28, according to the EIA. “We still have a supply disruption in the Middle East at the same time refineries in both the Middle East and Russia have been damaged,” Andy Lipow, president of Lipow Oil Associates, said in the report.
Diesel prices have also reached a record ahead of the holiday weekend. AAA placed the national average at $5.90 a gallon on Monday, compared with $3.71 a gallon a year earlier.
Some relief could come from the seasonal switch to winter-grade gasoline. Winter gasoline is generally cheaper to produce because it does not require the more expensive summer formulation. The Environmental Protection Agency announced on August 20 that winter-blend gasoline could be sold from September 1, earlier than the normal changeover period, to increase supplies and help lower pump prices.
The change in gasoline blend may not fully offset high crude costs. Andy Lipow said the direction of oil prices would remain closely tied to whether the US and Iran reach an agreement that allows normal traffic through the Strait of Hormuz. For now, American motorists are entering Labor Day with the highest holiday gasoline average recorded by AAA.
