Donald Trump’s war in Iran is set to exacerbate the financial hardships of tens of millions of Americans, as gas prices over Labor Day are set to be the highest on record.
GasBuddy has forecast average gas prices of $4.03 per gallon over the holiday period, 87 cents higher than in 2025 and above the previous record high of $3.83 a gallon in 2012.
The president’s Iran war and the closure of the Strait of Hormuz, as well as Ukraine bombing Russian oil refineries with drone strikes, have contributed to the rise in gas prices around the world.
GasBuddy warns that continuing “geopolitical tensions” and “disruptions” to global oil supplies could push diesel prices to record highs in the weeks ahead.
“It’s been a challenging year for motorists, with constant ups and downs at the pump that stayed elevated into this final summer holiday, though relief may lie ahead if tensions ease,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a statement.
“Last year saw the cheapest Labor Day since 2020, but the pendulum has swung wildly this summer. This year has been less about typical supply and demand, and more about uncertainty over how global tensions will affect the availability of crude oil and refined products,” De Haan added.
Trump’s war in Iran has dragged on for more than six months, with has no end in sight. The Middle East conflict pushed gas prices up to near record-breaking levels last seen during President Joe Biden’s term in office, when Russia’s invasion of Ukraine sent energy prices soaring.
In 2022, the national average gas price hit an all-time high of $5.02 a gallon, according to AAA. However, by the time Biden left office, it had fallen to $3.12.
The current national average is $4.12, $1 higher than a year ago, when Biden left the White House.
The average cost of gas in the U.S. just before Trump started his war in Iran was $2.98. Since then, prices have nearly reached the record high set in 2022, peaking at $4.56 in mid-May.
Voter backlash to rising gas prices, as well as the president’s failure to control food costs and the deeply unpopular war, could have disastrous effects on the GOP in November’s midterm elections.
Trump met with U.S. refiners and fuel distributors on Tuesday as he scrambled to find ways to expand domestic refining capacity and increase energy production across the supply chain to bring down gasoline prices, a White House official told CNBC.
The Daily Beast has contacted the White House for comment.
