Trump Backs Suspension of Federal Gas Tax as Iran War Drives Prices Higher

President Donald Trump said Monday that he supports suspending the federal gasoline tax as Americans face rapidly rising fuel prices tied to the ongoing conflict with Iran.

Speaking from the Oval Office, Trump was asked whether he would back a temporary suspension of the federal gas tax to help offset higher prices at the pump. The president responded that he would.

“As soon as this is over with Iran, as soon as it’s over, you’re going to see gasoline and oil drop like a rock,” Trump said. “Going to be dropping down like a rock.”

When asked how long a suspension would remain in place, Trump replied, “until it’s appropriate.”

According to the U.S. Energy Information Administration, the federal gasoline tax currently stands at 18.4 cents per gallon, while the federal diesel tax is 24.4 cents per gallon.

Data from AAA showed the national average gasoline price on Monday at $4.52 per gallon, an increase of roughly 50 cents over the past two weeks. Two days before the war began, the national average stood at $2.98 per gallon.

Removing the federal gas tax would reduce the national average price to about $4.33 per gallon. Trump acknowledged the reduction would be modest but said, “it’s still money.”

Still, suspending the tax would face major political and legislative hurdles. Political reporter James Bikales noted that the White House had only recently dismissed the idea.

“It’s very interesting actually — the White House had sort of dismissed this idea for the last couple weeks,” Bikales said. “When we spoke to them, they said this wasn’t actively being considered. So it goes to show, as the oil crisis continues, the administration is looking at more and more different measures.”

Bikales explained that Congress would need to approve any suspension because federal fuel tax revenues fund highway and transportation projects through the Highway Trust Fund, which he described as already “close to insolvent.”

With Memorial Day weekend approaching — traditionally the start of the summer driving season — concerns are growing among Republicans about the political impact of even higher fuel prices.

“That could be a political nightmare for Republicans,” Bikales said, referring to fears that gasoline prices could climb to $5 per gallon.

On the broader conflict, Bikales said energy analysts believe reopening the Strait of Hormuz remains critical to stabilizing global oil markets. Trump said Monday that negotiations with Iran are currently “on life support,” contributing to renewed pressure on crude oil prices.

“The markets are really watching any sign that the Strait of Hormuz might reopen,” Bikales said. “As of right now, they’re not optimistic.