US gasoline tops $4 on Labor Day for first time as Iran war tightens fuel supply
Built WorldSix-month conflict closes Strait of Hormuz, driving diesel and jet fuel to records
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Overview
Updated 1 hour agoThe average price of a gallon of gasoline in the US topped $4 on Labor Day weekend for the first time on record. Diesel hit $5.85 a gallon, and jet fuel and heating oil climbed with them.
The cause is supply, not a refinery hiccup. Since February, when the US and Israel attacked Iran, the Strait of Hormuz has been shut to normal tanker traffic. Refineries are running at 98% capacity, inventories sit below their five-year average, and there is little spare fuel anywhere to cover the gap.
Why it matters
Fuel moves everything in the US economy, and diesel at $5.85 pushes the cost of every trucked good into store prices.
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People Involved
Organizations Involved
Tracks US gasoline and diesel prices and publishes the national average.
Federal agency within the US Department of Energy that publishes official energy statistics.
Research group that calculates the economic cost of energy disruptions.
Timeline
February 2026 September 2026
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Gasoline tops $4 on Labor Day for first time
Latest MarketNational average expected to reach $4.03, beating the 2012 record of $3.83 on the holiday weekend.
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Diesel hits record $5.85 a gallon
MarketThe highest diesel price on record, up from about $3.76 before the war began.
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Gasoline averages $4.13, inventories fall
MarketEIA reports gasoline stocks at 205.7 million barrels, below the five-year August average.
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Ukraine hits Russian refineries
ConflictRepeated drone attacks tighten global fuel supplies on top of the Hormuz closure.
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Iran shuts Strait of Hormuz
ConflictCrude oil traffic through the key waterway plunges; Iran refuses to reopen it.
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US and Israel launch strikes on Iran
ConflictThe attack starts a war that cuts off the Strait of Hormuz to normal tanker traffic.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
1973 oil embargo (1973-1974)
Arab members of OPEC cut oil exports to the US and its allies after Washington backed Israel in the Yom Kippur War. Oil prices roughly quadrupled, and Americans waited in long gas lines under odd-even rationing.
Gasoline prices roughly doubled within months; the embargo ended after negotiations in March 1974.
It created the Strategic Petroleum Reserve and made oil shocks a recurring feature of American politics.
Like the Hormuz closure today, a geopolitical act shut off a key supply route and sent pump prices soaring within weeks.
2008 oil spike (2008)
Crude hit $147 a barrel in July 2008, and the US average gas price peaked around $4.11 a gallon. On Labor Day weekend 2008, gas was at an inflation-adjusted record near $5.63 in today's dollars.
Prices collapsed within months when the financial crisis crushed demand.
2008 held the Labor Day price record until 2026 and remains the reference point for what high fuel prices look like.
It shows how fast supply shocks can spike prices, and how quickly they unwind when demand collapses.
2022 fuel spike after Russia's invasion of Ukraine (2022)
After Russia invaded Ukraine, sanctions and market panic pushed US gas to an average of about $5.02 by June 2022, the highest nominal price ever until 2026.
Prices eased over the following months as the US released crude from the Strategic Petroleum Reserve.
The episode set expectations for how governments respond to fuel shocks, including reserve releases and waiver extensions.
The 2026 crisis reuses the same playbook, but with a more direct supply choke point: a closed strait rather than sanctions.
