Labor Day Gas Prices Hit Record High

US gas prices have reached a record high for September, with gasoline averaging $4.15 per gallon and diesel at $5.85, due to supply chain disruptions caused by the conflict in the Strait of Hormuz, Ukrainian strikes on Russian refineries, and shrinking US inventories. The Trump administration has announced deals to secure Venezuelan oil supplies and launched a price-gouging probe, but analysts say relief at the pump is not expected immediately. The high prices are not only affecting drivers but also contributing to higher food costs and broader inflation concerns, with a 50-50 chance of a rate hike when the Federal Reserve meets in mid-September. President Trump has acknowledged the importance of gas prices for American voters, but his intervention in Venezuela is not expected to have an immediate impact on consumer prices. The situation is expected to remain tight, with refineries running at over 103% capacity and stockpiles of diesel at the lowest seasonal levels on record. Some traders see a rare opportunity to bet on gasoline prices rising into the winter, with stockpiles at the lowest entering September since 2012.