Trump Backs US Gas Tax Suspension as Iran War Pushes Fuel Prices to Four-Year High

United States President Donald Trump has expressed support for suspending the federal gasoline tax as soaring fuel prices triggered by the ongoing Iran war continue to squeeze American consumers and raise political pressure ahead of the midterm elections.

Speaking to reporters at the Oval Office on Monday, Trump said he was prepared to back a temporary suspension of the 18.4-cent federal gasoline tax to ease the burden on motorists.

“Yeah, I’m going to reduce,” Trump said when asked whether he would suspend the tax. Pressed on how long the suspension would last, he replied: “Till it’s appropriate.”

The proposed measure would require approval from the U.S. Congress, currently controlled by Republicans.

The move comes as fuel prices in the United States continue to climb following the escalation of hostilities involving Iran and the effective closure of the Strait of Hormuz — a vital global oil transit route through which nearly 20 per cent of the world’s oil supply normally passes.

According to AAA data, gasoline prices in the U.S. rose to an average of $4.52 per gallon on Monday, the highest level recorded since 2022.

Republican Senator Josh Hawley announced plans to introduce legislation seeking a 90-day suspension of both the federal gasoline tax and the 24.4-cent diesel tax.

The proposal is expected to ignite debate in Congress, as federal fuel taxes generate approximately $2.5 billion monthly for road maintenance and infrastructure projects across the country.

Senate Majority Leader John Thune appeared cautious about the idea, arguing that reopening the Strait of Hormuz would be a more effective long-term solution to lowering fuel costs.

“We’ll see where our members are,” Thune said while noting that fuel taxes remain an important source of funding for highway repairs.

Interestingly, the idea of suspending the gas tax had earlier gained support among some Democrats. In March, Senator Mark Kelly and other Democratic lawmakers proposed pausing the tax until October to cushion the impact of rising fuel costs on Americans.

Analysts say the spike in gasoline prices poses a growing political challenge for Trump and Republican lawmakers as voters grapple with inflation and increasing transportation costs ahead of the November elections.