Business & Finance
US gas prices set Labor Day record amid Middle East conflict
AAA reports the national average reached $4.15 per gallon ahead of the holiday weekend, driven by high crude oil costs and shipping disruptions.
The short version
- AAA expects the 2026 Labor Day weekend to mark the highest national average gas prices on record, surpassing the previous record of $3.82 set in 2012.
- US motorists face national average prices of $4.15 per gallon heading into the holiday, with California seeing the highest statewide average at $5.81.
- Higher costs are primarily attributed to elevated crude oil prices linked to the ongoing war involving the US, Israel, and Iran and the closure of the Strait of Hormuz.
- Fuel prices continue to show significant regional variance, with Midwestern and Southern states like Indiana recording the lowest averages.
Key facts
- The national average gas price reached $4.15 per gallon on September 4, 2026, breaking the previous Labor Day record of $3.82 per gallon set on September 3, 2012.[Business Insider]
- AAA attributed the counter-seasonal price increase to elevated crude oil costs stemming from the US-Israeli conflict with Iran and the closure of the Strait of Hormuz in late February.[Business Insider]
- California recorded the highest fuel price in the nation at $5.81 per gallon on September 4, 2026, representing a 26.1% increase from the prior year.[Business Insider]
- Indiana recorded the lowest fuel price among surveyed states on September 4, 2026, at $3.45 per gallon.[Business Insider]
What remains uncertain
- The duration of elevated fuel prices remains dependent on the ongoing conflict with Iran and the reopening of shipping routes through the Strait of Hormuz.[Business Insider]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.