Energy Secretary signals possible gas tax relief as Americans face rising fuel costs

While President Donald Trump claimed last week that gas prices came down “very substantially,” preparations being taken by his administration suggest otherwise. Speaking to reporters last Thursday, the President said, "Gas prices have come down today…They came down very substantially today. The stock market is way up." 

However, several reports show that Iran's blockade of the Strait of Hormuz, coupled with the lack of confirmation on an Iran-U.S. deal to end the Middle East conflict, has inflated gas prices globally. The U.S.A., too, has not remained immune to its effects. The national average gas price rose last week to $4.55 a gallon, according to AAA — the highest since 2022, when the national average reached $5.01.

When Energy Secretary Chris Wright was asked if he sees gas prices crossing the $5 a gallon mark in the near future, he declined to answer, stating, ”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 Iran has fought." He, however, assured that the Trump administration is prepared to take all measures necessary to lower prices for Americans. 

Responding to a question on the possibility of suspending federal taxes on gas, the Energy Secretary told NBC's 'Meet the Press' that the administration is "open to all ideas." "All measures that can be taken to lower the price of at the pump and lower the prices for Americans, this administration is in support of," Wright said. He expressed optimism that gas prices would drop below $3 a gallon once the Strait of Hormuz opens after the end of the conflict.

Oil prices climb after Trump rejects Iran proposal

Meanwhile, on Monday, oil prices surged again after President Trump rejected Iran's response to the United States' latest proposal to end the war, calling it "TOTALLY UNACCEPTABLE" in a post on Truth Social. International benchmark Brent crude futures maintained gains of approximately 2%, holding steady above $103 per barrel after a Sunday evening spike that saw prices flirt with the $106 mark. Domestically, U.S. benchmark West Texas Intermediate (WTI) crude followed a similar upward trajectory, rising 1.5% on Monday to trade near $97 per barrel, recovering after an initial surge past the $100 threshold.

As per Iranian state media, Tehran's latest proposal on ending the war with the U.S. included a call for reparations and Iran's complete sovereignty over the Hormuz Strait. "We will never bow our heads before the enemy, and if talk of dialogue or negotiation arises, it does not mean surrender or retreat," Iranian President Masoud Pezeshkian said in a post on X. "Rather, the goal is to uphold the rights of the Iranian nation and to defend national interests with resolute strength."