President Donald Trump said he plans to suspend the federal gas tax as consumers face higher prices at the pump.
Fuel prices have surged since the start of the war in Iran, which has disrupted shipping through the Strait of Hormuz, a key waterway that carries about 20% of the world’s fuel supply.
The national average for a gallon of regular gasoline is $4.52, according to AAA. That is about 40 cents higher than a month ago and $1.40 more than a year ago.
Federal taxes include an excise tax of 18.3 cents per gallon on gasoline, according to the U.S. Energy Information Administration.
While Trump did not provide details about his proposal, Congress would still need to approve the move.
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Meanwhile, Trump expressed optimism that gas prices would stabilize once the conflict with Iran ends, though it remains unclear how soon that could happen.
On Monday, Trump said the current ceasefire with Iran was on “life support” after receiving the country’s response to a proposed peace deal.
Trump has repeatedly said Iran cannot be allowed to obtain a nuclear weapon. Before the U.S. and Israel bombed Iran on Feb. 28, the administration repeatedly claimed Tehran was weeks away from developing one.
Iran later retaliated with strikes targeting Israel, U.S. assets in the region and Gulf allies before agreeing to a ceasefire.
