Trump Proposes 90-Day Federal Gas Tax Pause Amid Iran Conflict

On May 11, 2026, President Trump proposed a 90-day suspension of the federal gasoline tax of 18.4 cents per gallon. The administration said the temporary break would cut about $2.75 from a 15-gallon fill-up.

The announcement came as the U.S.-Iran conflict, which followed rising tensions in the Strait of Hormuz in late February, entered its 11th week. Since the fighting began, global oil prices have risen about 25% and major world stock indexes have fallen roughly 4%.

The Strait of Hormuz carries nearly one-fifth of daily global petroleum flows, making transit through the waterway a major factor in supply and shipping costs.

The administration described the 90-day period as short-term relief for motorists. Any suspension of the federal gasoline tax requires congressional approval before it would take effect.

Higher oil prices are affecting parts of the economy. Fuel-price increases add to headline inflation measures, raise input costs for energy-intensive industries and are a consideration for Federal Reserve discussions on interest rates.

Bitcoin’s price has risen about 15% over the past 30 days. Analysts estimate higher fuel and power costs have increased Bitcoin mining expenses by roughly 10% to 15% in regions that rely heavily on coal and natural gas for electricity generation.

Mining operations in Texas and Kazakhstan are experiencing larger cost increases because of fossil-fuel–based power mixes. Miners powered by hydroelectric, solar or wind report smaller changes to operating costs.

Interest has risen in energy-focused crypto products, including tokenized commodity markets, tokenized oil futures, decentralized energy trading platforms and protocols that connect mining operations to renewable energy credits.

Lawmakers in Congress will review the proposal. Any extension of the tax suspension or additional measures would require legislation to become law.