American drivers are paying record Labor Day prices at the pump as higher crude and supply disruptions in the Middle East and Russia tighten global markets and push up fuel costs.
The national average price for gasoline reached $4.15 on Monday, up from an average of $4.08 a week ago, according to the American Automobile Association. The previous Labor Day record was $3.82, set in 2012.
"Labor Day weekend travelers are facing the highest gas prices ever for this time of year," AAA said Friday. "The national average has never been above $4 per gallon on Labor Day."
The price of crude oil--the main input for gasoline and the single largest component of its retail price--has surged since the Iran war began on Feb. 28. West Texas Intermediate futures, the U.S. oil gauge, traded just shy of $93 a barrel Monday, compared with around $67 before the war. Brent crude, the international benchmark, was around $97 a barrel, up from $72 prewar.
Diesel prices have also climbed to a new record, with the national average hitting $5.90 a gallon on Monday, compared with $3.71 a year earlier. Ukrainian attacks against Russian refineries and reduced shipping through the Strait of Hormuz are tightening global supplies, increasing demand for U.S. fuel and boosting refinery margins.