Trump seeks temporary federal gas tax suspension amid Iran war price spike

President Trump has called for a temporary suspension of the federal gas tax to ease the burden of soaring pump prices caused by the ongoing war with Iran. The move would require congressional approval and comes as average gasoline costs have jumped more than 50 percent to $4.52 per gallon.

Trump told CBS News on Monday that he supports pausing the 18.4-cent-per-gallon tax on regular fuel for a period of time. He said the tax would be reintroduced once prices fall, adding that the duration would last “till it’s appropriate.” The president spoke from the Oval Office after an earlier phone interview with the network’s Nancy Cordes.

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Illustration of high California gas prices near $6 at a pump and governor candidates debating against tax suspension relief.
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Top California governor candidates reject gas tax suspension as pump prices near $6

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Several leading candidates in California’s 2026 governor’s race said in a CBS Los Angeles debate on April 28 that they oppose suspending the state’s 61.2-cent-per-gallon gasoline excise tax, even as average prices statewide hovered around $5.98 a gallon, according to AAA. Two Republican contenders backed a suspension, while two lower-polling Democrats said they would support temporary relief.

Rising fuel prices from the ongoing conflict in Iran are prompting households and industries worldwide to reduce oil consumption, with experts suggesting some changes may endure. The International Energy Agency has noted demand destruction, forecasting a drop of 420,000 barrels per day this year. Asia, hit hardest by supply disruptions through the Strait of Hormuz, is accelerating shifts toward renewables and electric technologies.

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About a month after the United States began military operations against Iran, some Republican organizers in battleground states say they continue to support President Donald Trump’s decision while warning that higher gasoline prices and rising farm input costs are fueling voter irritation ahead of the 2026 midterm elections.

The Department of Energy welcomed progress in US-Iran peace talks but cautioned that restoring domestic fuel prices to pre-crisis levels could require six to 12 months. Officials emphasized that the situation now involves broader economic effects beyond oil supply.

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Oil prices climbed sharply after Donald Trump rejected Iran's peace plan, sending ripples through global markets. The rupee hit a record low and equities slumped in India amid the developments. This follows last week's US-Iran exchange of fire that shattered a fragile ceasefire.

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