US Labor Day Fuel Prices Reach Record Highs Amid War on Iran and Global Refinery Disruptions

Gasoline and diesel prices across the United States surged to all-time Labor Day records, driven by the ongoing joint U.S.-Israel war on Iran, shipping disruptions in the Strait of Hormuz, and high strain on domestic and international refineries. The national average for regular gasoline climbed to $4.14–$4.15 per gallon, breaking the previous 2012 record, while diesel reached a record $5.85 per gallon. Regionally, San Diego County hit a historic high of $5.95 per gallon. Energy experts cite limited refinery capacity, extreme heat, and overseas disruptions as factors complicating typical post-summer price relief.

// Background

The joint U.S. and Israel war on Iran, which commenced in February, triggered steep crude oil price increases and drastically reduced shipping traffic through the critical Strait of Hormuz. Gas prices typically decrease following the Labor Day conclusion of the summer driving season as refineries shift to winter blends; however, tight refining capacity and geopolitical shocks have challenged this trend.

// Key Developments

• U.S. national average gasoline price reached a record Labor Day high of $4.14 to $4.15 per gallon, surpassing the 2012 record of $3.82.
• San Diego County regular self-serve gas hit a record $5.95 per gallon, exceeding its previous 2023 Labor Day record of $5.38.
• National diesel average peaked at a record $5.85 per gallon, increasing transportation and consumer goods costs.
• Crude oil transport through the Strait of Hormuz plunged following the outbreak of the U.S.-Israel war on Iran in February.
• U.S. refineries operated at 98% capacity in extreme heat, while Russian and Chinese refinery disruptions further constrained supply.