Energy Secretary Chris Wright said the administration is open to suspending the federal gas tax as Iran conflict keeps gas prices high.
Gas prices are climbing again, and the administration is floating a measure that would touch one of the most politically sensitive parts of the energy bill: the federal gas tax.
Energy Secretary Chris Wright said on NBC that the Trump administration is open to suspending the federal gas tax as part of a broader effort to bring down costs at the pump.. When asked directly whether President Donald Trump is open to that idea. Wright replied that the administration is open to “all ideas. ” while also emphasizing that “everything has tradeoffs.”
Wright’s comments come as gasoline prices rise amid the war in Iran. a conflict that has tightened global oil supply by disrupting shipping through a key chokepoint.. Oil flow through the Strait of Hormuz remains effectively blocked. according to the report. leaving less crude available and adding upward pressure to prices.
The report put the national average at $4.52 a gallon, up more than 50% since the war with Iran began. Wright, however, declined to offer a prediction for how high prices could go next, telling viewers he cannot forecast the price of energy in the short term or even the medium term.
In defending the administration’s posture, Wright said the U.S.. is aiming to end what he described as a 47-year conflict Iran has fought.. He also said the administration is looking at “all its options” to reduce what Americans pay for gasoline. describing the effort as focused on measures that can lower pump prices for consumers as well as costs for businesses.
Federal gas taxes are only part of what drivers pay. and the report noted that drivers pay about $0.18 a gallon in federal taxes.. Even if that tax were paused. it would not automatically bring prices back to pre-war levels. because other components of the price—such as crude costs. distribution. state taxes. and market dynamics—could remain elevated as long as the Iran-related supply squeeze continues.
Any gas tax holiday would also require Congressional action, the report said. Wright indicated the administration is open to ideas but did not suggest it could be implemented unilaterally, underscoring that the federal tax piece is ultimately controlled by lawmakers.
Asked about whether prices could rise further before the conflict ends, Wright said he wouldn’t rule out gas reaching $5 a gallon, depending on how the situation evolves. At the same time, he argued the United States is positioned strongly, describing the country as being “in a tremendous position.”
Beyond the politics of a gas tax pause. the comments highlight how closely domestic energy costs are tied to international events.. With Hormuz effectively blocked. the supply constraint can override many short-term price interventions. meaning even targeted tax measures may only partially offset the market pressure that comes from reduced oil flows.
That dynamic also helps explain why Wright avoided specific projections. When prices are being driven by a rapidly changing geopolitical crisis, changes at the federal tax level can become one factor among many—rather than a lever that can reliably control the overall trajectory of pump prices.
For lawmakers. the administration’s willingness to consider suspending the federal gas tax puts a familiar policy question back on the agenda: whether Congress can reach a deal quickly enough to affect consumer prices in the near term.. If Congress were to pursue a tax holiday. the tradeoff would be weighing short-term relief against the revenue implications. especially as the report suggests prices may remain high until the Iran conflict is resolved.
The immediate political pressure is clear: Americans are paying markedly more at the pump. and the administration is signaling that it sees federal tax policy as one potential tool in the effort to reduce the burden.. Still. Wright’s remarks suggest expectations should be calibrated—because supply disruptions tied to the war are likely to continue shaping prices long after any tax change takes effect.
federal gas tax energy secretary Chris Wright gasoline prices Iran conflict Strait of Hormuz Trump administration
1) Fresh signal from the White House: Energy Secretary Chris Wright told NBC the Trump administration is “open to all ideas” about suspending the federal gas tax as Iran-related disruptions keep crude supply tight. The latest reaction from markets and Capitol observers is cautious optimism, but also skepticism that a tax pause can quickly unwind prices when the Strait of Hormuz is effectively blocked. Politically, it tees up a high-salience election-year fight over who can deliver relief fast, and whether the administration can frame this as immediate action rather than tinkering. Economically, even a pause would likely only shave part of the total cost—federal taxes are roughly $0.18 a gallon—so the impact may be modest if crude and distribution costs stay elevated. 2) Congress becomes the real bottleneck: Wright’s comments reinforced that any gas tax suspension requires Congressional action, which means the timing depends on negotiations and the willingness to accept short-term revenue losses. The latest reaction in Washington is that lawmakers will be pressured to move quickly, but only if the measure is paired with broader budget or energy compromises. The political impact is a renewed push for bipartisan branding around affordability, especially if prices continue to track above $4.50 per gallon. Economically, the revenue tradeoff could intensify scrutiny of deficits and how leadership plans to offset the lost receipts. 3) Public debate shifts from “tax” to “supply reality”: With the national average reported at $4.52 a gallon and rising more than 50% since the Iran war began, public discussion increasingly focuses on whether any domestic policy can overcome international chokepoints. Latest reactions among consumer advocates and budget hawks are converging on the idea that supply disruption may dominate the price path, so a holiday might provide partial, temporary relief. Politically, that could blunt the administration’s messaging if the price doesn’t fall soon. Economically, the ongoing supply squeeze risks keeping expectations high for continued volatility even after a tax pause. 4) The administration manages expectations, setting up a potential ceiling: Wright wouldn’t rule out gas reaching $5 a gallon, depending on how the crisis evolves, which is effectively an advance warning that relief may be limited. The latest reaction from political commentators is that this is defensive messaging to prevent backlash if prices don’t respond as hoped. The political impact is heightened pressure on Congress to either act decisively or risk being blamed for delays. Economically, the continued uncertainty helps explain why energy officials avoid firm forecasts, because market pricing in the near term is tied to geopolitical developments rather than the timing of domestic tax changes.