Gas Prices Hit Record $4.14 on Labor Day as Oil Nears $100—Drivers Feel the Squeeze
Fuel prices have surged to record highs, with the US national average for regular gasoline hitting $4.14 per gallon over the Labor Day weekend—a 38% jump since the war with Iran began in February—while global oil prices approach $100 per barrel, sparking warnings from traders that “something has to break” [6][7].
The spike is driven by a renewed supply crunch following attacks on commercial shipping routes and the near-closure of the Strait of Hormuz, a passage that carried a fifth of the world’s oil before the conflict [6]. Brent crude closed at $95.52 a barrel on Friday, up from $72.48 the day before the war began [6]. In the eurozone, energy prices jumped 14.3% in August compared to last year, pushing annual inflation to 3.3%—the highest rate in nearly three years [8][10].
US Energy Secretary Chris Wright said relief could come soon, but only if Americans drive less as the summer season ends [6]. He pointed to two Trump administration actions that could help lower prices: a deal to secure 65 billion barrels of oil reserves from Venezuela and eased rules for US refiners to produce more gasoline [6]. “If I had to guess, they’re more likely to go down than go up,” Wright said on CNN’s “State of the Union” [6].
The American Automobile Association (AAA) confirmed that the national average has never been above $4 per gallon on Labor Day, with the previous record set at $3.82 in 2012 [6]. For voters in key states like New Jersey, the pain at the pump is testing loyalty to the Republican Party ahead of November’s midterm elections. One voter who supported Donald Trump in 2020 said, “I voted for him twice, but I’m not sure I can afford to keep supporting a party that doesn’t talk about my grocery bill” [4].
The cost-of-living squeeze is spreading globally. In Sweden, experts warn that fuel prices are artificially low and will need to rise to meet climate goals and European Union requirements, regardless of which party wins the upcoming election [1][2]. Indonesia has raised the maximum fuel surcharge on domestic flights to 40 percent due to rising aviation fuel costs [9]. The European Central Bank (ECB) now faces renewed pressure to raise interest rates, with Finnish central bank governor Olli Rehn saying, “We must not show any complacency regarding these inflationary pressures. We cannot afford an affordability crisis in Europe” [10].
US fuel prices hit Labor Day record, and Trump voters are worried Gas Prices Will Drop—If Americans Drive Less, Energy Chief Says Oil Hits $100? Traders Warn “Something Has to Break” Eurozone Inflation Surges to 3.3% as Energy Prices Jump 14.3% Eurozone Inflation Hits 3.3%, Highest in Three Years, Pushing ECB Toward Rate Hike Fuel Prices Set to Soar in Sweden—No Matter Who Wins the Election Fossil Fuel Prices Set to Soar: Analyst Urges Drivers to Ditch Petrol and Diesel Cars Now