President Trump’s idea to temporarily stop collecting the federal gas tax is getting more support as the White House tries to lessen the economic effects of tensions with Iran.
This new effort follows comments made by Trump in a CBS News interview Monday, where he stated he’d like to temporarily suspend the federal gas tax.
Why the White House Is Considering a Pivot to a Gas Tax Cut
According to sources within the White House, suspending the federal gas tax is now being seriously considered as a way to lower costs for consumers. Initially, some advisors didn’t think it was needed, but with limited options left, officials are increasingly focused on this possibility to show they’re tackling rising prices.
As of late April, the proposal was considered a secondary option. But, with Iran’s attempts to negotiate a ceasefire hitting roadblocks over the last week, more people have begun to support it.
The planned tax cut could lower gas prices by about 18 cents a gallon, which is helpful now that the national average is over $4.50. However, it still needs to be approved by Congress.
According to a new report, White House officials agree that former President Trump needs to take noticeable action to help consumers, as prices have risen by 50% since the war began. One source quoted in the report said a move to provide relief is needed immediately.
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How the Iran War Reached US Pump Prices
This change comes after a dramatic increase in fuel prices, triggered by the closure of the Strait of Hormuz. Since the start of the conflict, gas prices have risen by over 50%.
As a researcher, I’ve been tracking the financial impact of the recent conflict, and my findings show Americans have spent an extra $39.6 billion on fuel since it began. Recent surveys, specifically an Ipsos Consumer Tracker wave, confirm this, with 56% of Americans reporting an increase in their gas expenses over the last three months.
In April 2025, that number was 24%. Meanwhile, the United States is quickly using up its oil reserves.
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As an analyst, I’m tracking a concerning trend in US oil reserves. Last week, the Strategic Petroleum Reserve experienced its largest single-week drop ever – a decrease of 8.6 million barrels. This is the seventh week in a row that we’ve seen the SPR decline, which is the longest such streak since 2023. This continued drawdown is something I’m watching closely.
— The Kobeissi Letter (@KobeissiLetter) May 15, 2026
Nonetheless, Trump has dismissed concerns about household budgets.
Look, as a crypto investor, I’m focused on risk and reward, and frankly, global politics are complex. But when I hear statements like that – someone saying they’re singularly focused on preventing Iran from getting a nuclear weapon and aren’t considering the broader financial implications for anyone – it feels… unsettling. It’s a very narrow view, and ignoring the potential economic fallout feels irresponsible, even to me, and I’m used to volatile markets!
Former President Trump stated that increased gas prices are a necessary consequence of preventing Iran from developing nuclear weapons.
— Disclose.tv (@disclosetv) May 15, 2026
With ceasefire talks faltering and Memorial Day approaching, the relief window is narrowing.
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2026-05-15 08:29