Trump sets unwanted Labor Day record with gas price at $4.14 mark

The average price of regular gasoline in the United States reached $4.14 per gallon heading into the Labor Day weekend, marking a significant increase compared to the previous year and the all-time Labor Day record of $3.82 set in 2012, according to the AAA motor club. Nicole Collins, who planned to visit friends in South Carolina, expressed frustration over the high gas prices, citing the additional costs of raising a baby.

The surge in gas prices has been traced back to the U.S.-Israel military strikes on Iran in February, leading to a halt in crude oil traffic through the strategic Strait of Hormuz due to Iran's refusal to reopen it. Energy Secretary Chris Wright acknowledged that gas prices remain higher than those observed on previous Labor Day weekends but assured that the administration is taking steps to push them down.

However, diesel prices hit an even higher record of $5.85 per gallon, impacting freight delivery systems and indirectly affecting consumers through increased costs at grocery stores and package delivery services. Experts blame the volatile situation in the Middle East, refinery capacity constraints, and geopolitical tensions beyond the Middle East, such as Ukrainian drone attacks on Russian refineries and declining Chinese refinery outputs, for the persistent high gas prices.

While a future decline in prices remains uncertain, some experts suggest that prices may still decrease in the coming months based on future crude oil futures.