Overview
- Over the Labor Day weekend national regular gasoline averaged roughly $4.03 to $4.15 per gallon while diesel reached all‑time averages around $5.85–$5.88 per gallon.
- The supply squeeze reflects the seven‑month U.S.–Iran conflict that has disrupted tanker traffic through the Strait of Hormuz and prompted strikes on oil tankers and regional refinery outages.
- U.S. refinery runs are near 98% capacity and distillate stocks are unusually low, with EIA data showing overall distillate inventories down about 10% year‑over‑year and East Coast stocks down roughly one‑third.
- High diesel costs are raising transport and farming expenses now and are likely to push up food and consumer prices over time because diesel powers trucks, tractors and many school buses.
- The administration faces political pressure as officials meet refiners and use measures such as regulatory relief, Strategic Petroleum Reserve moves and crude purchase deals while Energy Secretary Chris Wright says prices are more likely to fall after Labor Day if demand eases and production rises.