For the first time, all 50 states are experiencing gas prices above $4 a gallon, according to AAA data released Wednesday. Seven states have already crossed the $5 threshold, with California leading the nation at $6.15 per gallon while Georgia sits at the lowest end of the spectrum at $4.01.
The national average has reached $4.56 a gallon, a 53 percent jump since the conflict with Iran began roughly three months ago. The relentless climb is draining hundreds of millions of dollars daily from American wallets and squeezing profit margins across small businesses, while simultaneously fueling inflation across the broader economy.
The financial toll extends far beyond the pump. Transportation costs ripple through supply chains, raising prices on everything from groceries to delivery services. For trucking companies and logistics firms operating on thin margins, the surge threatens viability.
The outlook offers little comfort. Energy analyst Patrick De Haan from GasBuddy warned Wednesday that if the Strait of Hormuz remains blocked through mid-summer, the national average could smash the all-time record, potentially surpassing $5.03 per gallon. Such a level would represent territory the country has never seen before.
Southern states that had managed to hold ground in the $3.98 to $3.99 range days earlier have now been forced higher, signaling the wall of $4 prices is continuing to advance. With crude supplies constrained and geopolitical tensions showing no signs of easing, the pressure on fuel costs shows no immediate sign of letting up.
Author James Rodriguez: "When every state hits $4 and analysts are warning about $5-plus, you're looking at real economic shock hitting households and businesses simultaneously."
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