Trump predicts gasoline below $2 as prices hit record Labor Day high

  • President Donald Trump forecast gasoline below $2 after a U.S. victory over Iran.
  • AAA recorded a $4.14 Labor Day average and $4.15 on Monday; Brent settled at $97.31 and WTI at $92.65.
  • Kpler counted seven Strait of Hormuz transits, compared with roughly 120 daily before the war.

U.S. President Donald Trump said gasoline prices would fall rapidly after the United States wins its war with Iran, forecasting a decline first to $3 a gallon and ultimately below $2. In a Monday Truth Social post, he linked the outcome to preventing Iran from obtaining a nuclear weapon but gave no timetable; he also said oil prices "will drop precipitously" after victory. The comments came as AAA reported a record Labor Day gasoline average of $4.14 a gallon, above the previous holiday record of $3.82 in 2012, with the average reaching $4.15 on Monday. That compared with $2.98 before the conflict began on February 28. Brent crude settled at $97.31 a barrel and West Texas Intermediate at $92.65, their highest settlements since July 24. Strait of Hormuz shipping disruptions remain central to the outlook. Kpler counted seven vessel transits on Monday, versus a pre-war average of roughly 120 daily. Energy Secretary Chris Wright declined to forecast prices but said gasoline futures for delivery two months ahead were more than 30 cents a gallon below current prices. Goldman Sachs warned that escalating vessel attacks could push oil to $120, while market participants said sustained retail-price declines depend on restored shipping security and global supply-demand conditions.

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