Trump Rejects Iran Ceasefire Proposal

President Trump said Monday the ceasefire with Iran was on "massive life support" after he dismissed Tehran's response to a U.S. peace proposal. " He added that the 10-week-old conflict could continue, with the U.S. weighing further military options.

Trump spoke from the Oval Office as crude oil prices rose 5 percent and spot silver jumped more than 7 percent following the mutual rejection of proposals. The Strait of Hormuz disruption has driven U.S. gasoline prices to a national average of $4.52 per gallon, more than 50 percent higher than before the war began.

" The tax currently stands at about 18 cents per gallon on gasoline. He told CBS News earlier Monday that suspending it was "a great idea" and that the levy would phase back in once prices fall. Energy Secretary Chris Wright had said on NBC's "Meet the Press" the previous day that Trump was "open to all ideas" to lower gas costs.

Congressional action is required to pause the tax, which funds the Highway Trust Fund supporting highways and mass transit. A five-month suspension could cost the government billions in revenue, according to the Bipartisan Policy Center.

Congressional Action on Gas Tax Sen.

Rep. Both cited relief for American families amid high prices. Mark Kelly of Arizona had introduced similar legislation in March that has stalled. Pappas responded to Trump's comments by saying the suspension "should have happened months ago" and urged Congress to pass it this week.

It was not immediately clear how the Republican bills would differ from the Democratic proposal. Even with a suspension, consumers would likely see only a 10-to-16-cent reduction per gallon, with suppliers retaining the rest of the benefit, the Bipartisan Policy Center estimated.

Gas prices have risen sharply because of the closure of the Strait of Hormuz, which has delayed fuel shipments and driven Asian nations toward greater coal use.

The prolonged closure has also triggered humanitarian consequences far from the conflict zone. The UN World Food Programme reported that nearly 6 million Somalis, or one in three, face acute hunger, with 1.9 million children acutely malnourished. Food prices in parts of Somalia have surged 70 percent and fuel prices 150 percent, with therapeutic food shipments arriving 40 days late because of disrupted global shipping.

Analysts warned that failure to reach an agreement by late June could push oil above $130 per barrel, with U.S. pump prices potentially reaching $5 per gallon. Morgan Stanley and JPMorgan both issued notes forecasting severe shortages in refined products if the strait remains blocked.

Trump separately told reporters there is "no pressure" on the U.S. and predicted "complete victory" in Iran, saying its hardline leaders "are going to fold" because their economy is on the brink of collapse.

“It’s unbelievably weak. I would say the ceasefire is on massive life support … when the doctor walks in and says, ‘Sir, your loved one has approximately a 1 percent chance of living.'”

Iranian state media responded that its proposals were not drafted to please Trump and that the rejection did not matter. The conflict has already cost major manufacturers such as Toyota £3 billion in higher material costs and lost sales through March.

U.S. jobs data released Monday beat expectations for the second straight month despite rising gas prices and uncertainty from the Iran conflict. Asian markets showed a mixed open Tuesday, with the Nikkei 225 up 0.9 percent and the KOSPI up 3.8 percent as investors weighed the latest geopolitical developments alongside strong U.S. nonfarm payroll figures from Friday.

The federal gas tax suspension proposal comes as voters express growing dissatisfaction with economic conditions ahead of the 2026 midterm elections. Trump has also signaled he is considering renewing Project Freedom, an escort operation for merchant vessels in the region.

The ceasefire that took effect roughly 10 weeks ago now appears in jeopardy, with both sides rejecting each other's terms for formal negotiations. Trump is scheduled to meet with his national security team Monday to discuss next steps.