White House Searches for a Relief Valve as Iran Conflict Lifts Fuel Costs

President Trump’s proposal to suspend the federal gas tax is gaining momentum as White House officials race to limit the economic impact of the US-Iran war.

The renewed push comes amid Trump’s remarks during a Monday morning phone interview with CBS News, where he said he wants to pause the federal gas tax “for a period of time.”

Why the White House Is Considering a Pivot to a Gas Tax Cut

Reuters, citing people familiar with the White House’s discussions, reported that suspending the federal gas tax is “gaining urgency” after it was initially dismissed by some aides as unnecessary. Officials are reportedly running out of options to demonstrate they are addressing rising consumer costs.

One source said the proposal was still viewed as a backup plan as recently as late April. However, support for the measure strengthened over the past week as Iran’s ceasefire efforts stalled.

The proposed tax cut would reduce gasoline prices by roughly 18 cents per gallon at a time when the national average has climbed above $4.50. Nevertheless, Trump’s plan would require congressional approval.

“Within the White House, a consensus has emerged that with prices up 50% since the start of the war, Trump needs ‘a visible consumer relief move now,’ one of the people said,” the report read.

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How the Iran War Reached US Pump Prices

The shift follows a sharp climb in fuel costs due to the closure of the Strait of Hormuz. Gas prices have climbed by more than 50% since the war began. 

Americans have spent an additional $39.6 billion on fuel since the conflict, according to a Brown University tracker.  An Ipsos Consumer Tracker wave found that 56% of Americans report higher gas spending over the past 3 months.

That figure stood at 24% in April 2025. At the same time, the US oil reserves are being drained fast. 

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Nonetheless, Trump has dismissed concerns about household budgets.

“I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing: we cannot let Iran have a nuclear weapon. That’s all,” he said.

With ceasefire talks faltering and Memorial Day approaching, the relief window is narrowing.

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