Trump Backs Gas Tax Suspension Amid Iran War Economic Fallout

The White House is scrambling to contain the economic and political fallout of the war with Iran as hopes for a quick resolution fade. U.S. President Donald Trump has backed suspending the federal gas tax, which would knock 18 cents off motor fuel prices currently averaging over $4.50 per gallon nationwide.

The administration's concerns have deepened as U.S. oil and fuel exports surge to records, triggered by Asian and European buyers scrambling for needed supply. This has drawn down U.S. inventories at a time they typically rise, raising alarms among Wall Street analysts who warn the U.S. could face a crunch that could send gasoline, diesel, and jet fuel prices even higher this summer.

A majority of Americans feel financial strain from higher gas prices, with 60% saying their household's finances have taken a hit since the war started. Trump faces mounting pressure from fellow Republicans who fear economic pain caused by the war could spark voter backlash and cost the party control of the House of Representatives and possibly the Senate in November's midterm elections.