Trump Backs Temporary Federal Gas Tax Pause as Prices Hit $4.52

The ongoing U.S.-backed conflict with Iran has triggered sharp disruptions in global oil supplies, pushing American gas prices to an average of $4.52 per gallon and raising alarms about potential rationing within weeks. Energy analyst Eric Nuttall warned early this month that the world faces the largest energy crisis in modern history, driven by the partial closure of the Strait of Hormuz and Iranian strikes on regional infrastructure.

Nuttall told Bloomberg that demand would need to be curtailed more aggressively than during the COVID-19 pandemic, with effects materializing in days rather than months. A fifth of the world's oil trade passes through the strait, and analysts have tied the price spike of more than $1.50 per gallon since the conflict began on February 28 directly to those chokepoints.

President Trump has responded by endorsing a temporary suspension of the federal gas tax, which currently adds 18.4 cents per gallon on regular fuel and 24.4 cents on diesel. He told CBS News the pause would last until prices fall again, when the levy could be phased back in. Legislation to enact the measure has been introduced by Republican senators including Josh Hawley, though it requires congressional approval and cannot be achieved through executive action alone.

The proposal comes as Democrats highlight what they describe as a reversal in the president's approach to fuel costs. House Minority Leader Hakeem Jeffries noted that Trump previously criticized efforts to address high prices under the prior administration, yet now confronts voter frustration over affordability in an election year. A Fox News poll showed nearly 60 percent of respondents viewing the increases as a major household problem.

Critics have also pointed to earlier policy moves by the administration, including the elimination of electric vehicle tax credits and the rollback of fuel efficiency standards, as factors that left consumers more exposed to oil volatility. Author Patrick Tomlinson and others have questioned the timing of those changes amid the current supply strains.

Trump has insisted that prices will drop sharply once a diplomatic resolution is reached, dismissing Iran's latest counteroffer as inadequate and poorly conceived. A month-old ceasefire remains fragile, with the president acknowledging it is under significant pressure. Administration officials have not pursued airline bailouts despite doubled jet fuel costs, with Trump stating carriers are managing adequately.

The immediate effects are already visible in swing states and high-cost regions such as California, where averages exceed $6 per gallon. Observers warn that prolonged instability could force broader conservation measures if tanker traffic through the strait remains curtailed. With midterm elections approaching, the administration's handling of the crisis and its proposed tax holiday will face continued scrutiny from both parties.