Gas prices this Labor Day could be highest in 14 years as US-Iran conflict continues

Oil prices moved higher after news that U.S. forces began striking targets in Iran
Updated 2 hours ago
CHICAGO (WLS) -- Gas prices are rising ahead of the Labor Day holiday, with millions of people expected to travel by car.

The national average for a gallon of gas stands at $4.05, up nearly 29 cents from a month ago.



In Chicago, prices are higher. The average price is $4.46 per gallon.

"For some reason, in Chicago, we don't feel the drops," driver Lincoln Arbogast said.



Patrick De Haan of GasBuddy said motorists are unlikely to see relief before the holiday.

"Unfortunately, motorists that have been getting hit hard all summer, (are) not likely to see much relief for the last of summer's holidays," De Haan said.

Prices this Labor Day could be the highest in 14 years, surpassing a record set in 2012.

"It's certainly geopolitical tensions that have been on our radar now for six months, in part the U.S. and Iran and escalations, their closing the Strait of Hormuz," De Haan said.

Oil prices moved higher after news that U.S. forces began striking targets in Iran.



Drivers said they are adjusting their habits to cope with higher fuel costs.

"I just manage the stations that I go to," driver Gregory Sanches said.

Sanches uses the Shell app to save money on fuel.

"There's like events and promotions on the app; so you save like 10 cents here and there," Sanches said.

Amid the rising prices, President Donald Trump announced a new deal with Venezuela, saying the country will provide the United States with billions of oil barrels.



"It was this unbelievable value that was sitting dormant, but we're going to be taking all of that. We're gonna be taking that oil out. It's all coming to the U.S.," Trump said on Monday.

The president also told reporters that prices at the pump likely will not come down before the midterm elections in November.

"They don't have an ability to increase capacity at refineries quick enough to take advantage of any increase in oil, whether that's coming from Venezuela or anyone else," De Haan said. "U.S. refineries are running full tilt already."

Gas prices typically begin to fall by as much as 15 cents in the fall. This year, however, De Haan said that decline could be affected by global events.
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