The Trump administration is signaling it may consider suspending the federal gas tax as Americans continue to grapple with soaring fuel prices tied to escalating tensions in the Middle East and instability around the Strait of Hormuz.
Energy Secretary Chris Wright said Sunday that the administration is willing to explore nearly any option that could ease pressure on consumers and businesses dealing with rising energy costs.
“We’re open to all ideas, everything has tradeoffs,” Wright said during an appearance on NBC’s “Meet the Press” when asked about temporarily suspending the federal gas tax.
“All ideas to lower prices for American consumers and American businesses.”
The federal government currently charges an 18.4-cent-per-gallon tax on gasoline, a levy that has remained unchanged since the early 1990s. That tax generates roughly $36 billion to $40 billion annually for the Highway Trust Fund, which helps pay for road and infrastructure projects across the country.
While suspending the tax could provide some short-term financial relief at the pump, analysts note it would do little to solve the underlying supply disruptions driving prices higher.
National gas prices have surged in recent months following renewed conflict involving Iran and mounting fears over shipping disruptions in the Strait of Hormuz, one of the world’s most critical oil transit chokepoints. More than 20% of global oil shipments pass through the narrow waterway each year.
According to AAA data, the national average price for gasoline has climbed to roughly $4.52 per gallon. Before fighting involving Iran escalated earlier this year, prices nationally had been sitting below $3 per gallon. In states like California, prices have already soared above $6 per gallon at some stations.
Several states, including Georgia, Indiana, and Utah, have already paused their own state-level gas taxes in an effort to cushion the blow for drivers.
Still, critics of a federal suspension argue that consumers may not fully feel the benefits, especially if oil supply remains constrained or energy companies simply absorb part of the savings.
Wright acknowledged the uncertainty surrounding future energy prices but defended the administration’s broader approach to the crisis in the region.
“I can’t predict the price of energy in the short-term or even the medium-term, but what we’re doing is ending a 47-year conflict,” Wright said.
“If you have a hostile, unstable power like that, you simply cannot allow them to have nuclear weapons. That was a consensus opinion all my adult life.”
The administration has also relied on strategic petroleum reserves alongside allied nations in an attempt to stabilize global oil markets during the crisis.
Meanwhile, the Strait of Hormuz remains at the center of ongoing geopolitical tensions. Iran has intermittently threatened or targeted commercial shipping vessels in the region in an effort to pressure Western nations and disrupt maritime traffic.
Earlier this month, the Trump administration launched “Project Freedom,” a military initiative designed to escort commercial ships safely through the Strait. However, the operation was later paused amid reports that diplomatic negotiations with Iran were making progress.
Wright suggested the pause was strategic, arguing Iran’s leverage largely depends on its ability to disrupt shipping through the waterway.
“The US backed away, or just suspended briefly, Project Freedom, because of Iran’s concerns,” Wright explained.
“Iran has one card. They can cause trouble in the Strait of Hormuz; they are keen to get a negotiated deal.”
He added that the administration still hopes a diplomatic resolution can reopen shipping lanes without further military escalation.
“They said, ‘Wait, wait, wait, let’s talk. Let’s get a deal. We’re going to open this more quickly in a simpler fashion,’ and we’re given that chance to have a negotiated settlement, which is the best end here,” Wright said.
