Gas Prices Break Records Amid Iran War and Refinery Issues

The average price of regular gasoline in the United States hit $4.14 per gallon ahead of the Labor Day weekend, setting a new record and surpassing the previous high of $3.82 from 2012. The elevated fuel costs are impacting consumer travel plans, with individuals like Nicole Collins reporting reduced summer trips due to high driving expenses.

Gas prices began to climb following the U.S. and Israel's attacks on Iran in February. Iran subsequently restricted traffic through the Strait of Hormuz, a vital oil transit route. "Everything points to the Iran War and the Strait of Hormuz," stated Tom Seng, a professor of energy finance at Texas Christian University.

Energy Secretary Chris Wright offered no specific timeline for price relief but acknowledged the current higher costs. "Yes, they're higher today, but we're doing everything we can to push them down," Wright said Sunday.

Diesel prices have reached record highs, averaging $5.85 per gallon. This increase in transportation costs is being passed on to consumers through higher prices for goods and delivery services. Additionally, Ukrainian drone attacks on Russian refineries and declining output from Chinese refiners are contributing to the global diesel supply squeeze.