For the first time on record, every U.S. state now has an average gas price above $4 per gallon, AAA reported Wednesday. The national average stands at $4.56, with California leading at $6.15 and Georgia the lowest at $4.01. Seven states have already crossed the $5 threshold.
The milestone comes as the war with Iran approaches its third month, upending global oil markets and straining household budgets nationwide. Smaller businesses are feeling the pinch acutely, with profit margins eroding under higher transportation and logistics costs.
Prices have surged 53% since the conflict began, AAA data shows. Southern states had briefly held near $3.98 to $3.99 in recent days but have now joined the rest of the country above $4.
The situation could deteriorate further. GasBuddy analyst Patrick De Haan warned Wednesday that if the Strait of Hormuz remains closed through mid-summer, the national average could breach an all-time record above $5.03 per gallon. That scenario would likely accelerate inflation and deepen economic pain for consumers.
Counter-argument: Some analysts argue that strategic petroleum reserve releases or a rapid diplomatic resolution could cap further price increases, though no such moves have been confirmed.