The surge, fueled by the Iran War and refinery constraints, left drivers like Nicole Collins in Delaware grappling with costs that exceeded $4.199 per gallon at some stations.
The national average for regular gasoline hit $4.14 per gallon heading into Labor Day 2026, nearly a dollar higher than the previous year and surpassing the 2012 record of $3.82, according to the AAA motor club. Nicole Collins, a Delaware resident, described the strain of filling up at $4.199 per gallon while balancing family expenses, including a new baby. Gas is pretty high right now. It doesn’t help that we also have a baby, so we also have to pay for that,
she said, reflecting a sentiment echoed by drivers nationwide.
The Record Prices and Their Provenance
The spike in prices traces directly to the U.S.-Iran conflict, which disrupted crude oil shipments through the Strait of Hormuz, a critical global energy chokepoint. Tom Seng, a professor of energy finance at Texas Christian University, linked the crisis to the surge, stating, Everything points to the Iran War and the Strait of Hormuz.
Crude oil traffic through the strait has plummeted, and Iran’s refusal to reopen the waterway has exacerbated supply concerns. The national average for diesel, a key fuel for freight and agriculture, hit a record $5.85 per gallon, according to the Energy Information Administration.
Refinery capacity also played a role. U.S. refineries operated at 98% capacity, with many struggling under extreme Texas heat, according to Matthew Metzgar, a clinical professor of economics at UNC Charlotte. There’s just less gasoline coming out of those refineries,
he said, citing declining outputs from Chinese and Russian facilities amid Ukrainian drone attacks. Energy Secretary Chris Wright acknowledged the challenges, noting that prices remain above 2025 levels but emphasizing that markets forecast lower prices in coming months.
Drivers’ Struggles and Broader Economic Impact
For many, the financial burden is acute. The strain extends beyond gas pumps.
The economic ripple effects are palpable. Jaime Brito, executive director of refining and oil products for Dow Jones Energy, emphasized diesel’s role as the blood of the economy,
noting that higher fuel costs are passed to consumers through grocery and delivery prices.
Policy Responses and Uncertain Outlook
However, officials acknowledge limited levers to boost supply.
Geopolitical tensions remain a wildcard. Analysts like Patrick De Haan of GasBuddy warned that the national average gasoline price will probably hit $4.03 on Labor Day, far surpassing the previous record of $3.83 per gallon set in 2012, with prices already standing at around $4.13 per gallon on Thursday. Gasoline, while not at all-time records, is at its highest level ever recorded this late in the calendar year,
De Haan wrote, highlighting the unprecedented nature of the surge.
Political Fallout and Consumer Resignation
The crisis has become a political flashpoint, with critics targeting President Trump for his role in the Iran conflict. A USA Today op-ed accused him of starting a war with Iran that’s directly responsible for our record-breaking fuel costs, while drivers like Madison Moore in Houston lamented the lack of government action. You would think that our government can do a little bit more for their people when they actually need it,
she said, encapsulating the frustration of many.
As the nation grapples with the fallout, the outlook remains uncertain. With refineries operating near capacity and global tensions unresolved, experts warn that relief may be distant. It doesn’t really seem like there’s an end to it,
Collins said, a sentiment echoed by drivers nationwide. For now, the Labor Day weekend serves as a stark reminder of how geopolitical conflicts and supply chain vulnerabilities can reshape everyday life.
