US Energy Chief Predicts $4.14 Gas Will Fall as Labor Day Cuts Demand
Updated
Updated · Business Insider · Sep 6
US Energy Chief Predicts $4.14 Gas Will Fall as Labor Day Cuts Demand
3 articles · Updated · Business Insider · Sep 6
Summary
$4.14 a gallon gasoline prices are more likely to fall than rise after Labor Day, Energy Secretary Chris Wright said, arguing the end of summer driving will start easing demand.
Wright also pointed to looser refining rules that let US plants make more gasoline and to the Trump administration's deal for 65 billion barrels of Venezuelan oil reserves.
Those remarks come despite a war-driven energy shock: Brent closed at $95.52 on Friday versus $72.48 before the February US attack on Iran, after Tehran effectively shut the Strait of Hormuz.
AAA said Labor Day travelers are paying the highest gas prices ever for this time of year, with the national average up 4 cents from late August and 38% above prewar levels.
Fuel costs have become a political test for Trump before the midterms, after lowering living costs was a central campaign promise.
As global oil chokepoints tighten, are record-breaking pump prices the new normal despite promises of imminent relief?
With the Strait of Hormuz choked, can complex heavy crude swaps prevent a looming winter energy shock?
Will the unprecedented Venezuela oil deal actually rescue drivers, or are depleted reserves masking a deeper crisis?
Labor Day 2026: America Faces Record $4.15 Gasoline Amid Global Energy Turmoil
Overview
The 2026 Labor Day gas price crisis was triggered by the outbreak of war involving the United States, Israel, and Iran, which led to the closure of the Strait of Hormuz and a massive global oil supply shortfall. This supply shock pushed global crude prices above $90 per barrel, causing U.S. gasoline and diesel prices to hit historic highs. The crisis forced emergency releases from the Strategic Petroleum Reserve, driving it to its lowest level since 1982. Meanwhile, Ukrainian drone attacks on Russian refineries further tightened global fuel supplies, and high diesel costs drove up transportation and grocery prices, fueling public dissatisfaction with economic leadership.