U.S. gasoline prices hit their highest level ever recorded for Labor Day, with the national average for regular unleaded reaching $4.15 a gallon. The surge tracks Iran-related tensions and disruptions in the Strait of Hormuz, and prediction markets now assign a moderate increase in the likelihood of crude oil reaching a new all-time high by the end of September.
Americans driving over the Labor Day weekend paid record prices at the pump, with the national average for regular unleaded gasoline reaching $4.15 per gallon, according to @FirstSquawk. That figure surpasses the previous Labor Day record of $3.82, set in 2012.
Diesel prices are nearing $5.90 per gallon, also a record, pointing to broader strain across fuel markets rather than a move confined to gasoline.
The increases coincide with ongoing tensions between the United States and Iran and reported disruptions to shipping through the Strait of Hormuz, a chokepoint for global crude oil flows. Prediction markets are pricing a moderate increase in the likelihood that crude oil reaches a new all-time high by September 30, at a 1.2% probability, reflecting the pressure from the standoff.
Traders are watching for further signals from OPEC on production levels and from bodies such as the IEA, since either could shift expectations for crude prices in the coming weeks.
Source: Crypto Briefing
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