US gasoline prices hit a record during the end-of-summer holiday

US gasoline prices reached a record average of about $4.14 per gallon over Labor Day weekend, the holiday that marks the end of summer in the country. The increase followed interruptions to crude traffic through the Strait of Hormuz amid the war involving Iran.

The average price rose four cents from the previous week, according to the American Automobile Association. AAA said gasoline had never exceeded $4 per gallon during the holiday period. The previous Labor Day record was $3.82, set on September 3, 2012, while the average a year earlier stood at $3.19.

“Persistent volatility in the Strait of Hormuz has pushed crude oil prices into the $90-a-barrel range,” the organization said. After a record August, it added, Labor Day weekend was also heading toward a historic high for fuel prices. AAA said prices would normally decline at this time of year as gasoline demand eases, but higher crude costs have changed the pattern.

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Persistent volatility in the Strait of Hormuz has pushed crude oil prices into the $90-a-barrel range. After a record August, Labor Day weekend is also heading toward a historic high in fuel prices.

Diesel prices reached a separate record of $5.88 per gallon on Saturday, driven by the wars in Iran and Ukraine and their effect on fuel supplies. That price was about 60% higher than the $3.71 average recorded during the same period in 2025.

The disruption in the strategic strait has raised fuel costs, cut supply chains and unsettled markets. The article says the effects pushed US inflation to 4.2% in May before energy costs moderated and the rate fell to 3.4% in July. During the Memorial Day weekend, the unofficial start of summer, fuel averaged $4.55 per gallon, nearly $1.40 above the 2025 level and the highest figure for that date in four years.

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Although gasoline demand usually declines at this time of year, which normally leads to lower prices, the situation is different this year because of the high cost of crude oil.