Gas Tax Holiday Proposed
President Trump said on Monday he would like to temporarily suspend the federal gas tax as prices soar due to the war in Iran. The national average for regular gasoline is $4.52 per gallon, up from just under $3 per gallon before the conflict, according to AAA. Suspending the 18.4 cent-per-gallon tax would require congressional approval.
Congressional Support Emerges
Sen. Josh Hawley (R-Mo.) posted on X that he will introduce legislation to suspend the tax. Democratic Sens. Mark Kelly (Ariz.) and Richard Blumenthal (Conn.) have sponsored a bill to suspend the tax until Oct. 1, and Democratic Rep. Chris Pappas (N.H.) has a companion measure. The White House did not say whether Trump would seek action from Capitol Hill.
Limited Relief Expected
Suspending the gas tax would have a modest impact on fuel prices. The federal government charges 18.4 cents per gallon on gas and 24.4 cents per gallon on diesel, with the revenue funding the Highway Trust Fund. GasBuddy analyst Patrick De Haan estimated the suspension would cost the federal government about $2.1 billion a month in lost revenue.
Transportation Secretary Defends Road Trip Series
Transportation Secretary Sean Duffy and his family have a new five-part reality series on YouTube, "The Great American Road Trip." The series follows Duffy and his wife, Fox News anchor Rachel Campos-Duffy, as they travel to famous U.S. destinations including Civil War battlegrounds and Yellowstone National Park. Duffy defended his side project, accusing critics of being unpatriotic.
Iran Ceasefire in Limbo
President Trump described the U.S. ceasefire with Iran as being on “life support” in the Oval Office on Monday after he dismissed Tehran’s counteroffer on nuclear talks. Trump told reporters the Iranian response to a U.S. peace proposal was “stupid” and that the ceasefire is “on massive life support.” Trump said Iran had agreed to relinquish its stockpile of enriched uranium to the U.S., but apparently reversed course because their response Sunday omitted any mention of the issue.
Sticking Points in Negotiations
Iran has laid out its demands in a counteroffer to the U.S., seeking to push back nuclear negotiations, according to multiple reports. Iranian state media has said its negotiators demanded war reparations, Iranian sovereignty over the Strait of Hormuz, and an end to U.S. sanctions. Iran's state TV reported that Tehran has rejected the U.S. proposal, which it said "meant Iran's surrender to Trump's excessive demands."
Trump's China Trip Looms
President Trump is expected to fly to Beijing on Wednesday for a summit with Chinese President Xi Jinping, and the Iran war is likely to be on the agenda. Trump is expected to discuss the Iran war with Chinese President Xi Jinping. China has been urging Iran to reach a deal with the U.S. on ending the war and curbing its nuclear program.
With global energy markets rattled, Saudi Aramco's CEO Amin H. Nasser warned that the energy supply shock that began in the first quarter is the largest the world has ever experienced, and market recovery could extend into 2027.
