U.S. President Donald Trump announced on Monday that he would suspend the 18-cent federal gasoline tax to offset surging prices following the collapse of the ceasefire with Iran, which he described as being on "life support."

In an interview with CBS News, Trump stated: "Yup, we're going to take off the gas tax for a period of time, and when gas goes down, we'll let it phase back in." However, suspending a federal tax requires an act of Congress, not unilateral executive action.

Key Trump ally Senator Josh Hawley (R-MO) said he would introduce legislation to enact the suspension. In March, Democratic Senator Mark Kelly (D-AZ) proposed a similar measure lasting until October.

Energy Secretary Chris Wright hinted at the move on Sunday, telling NBC's Meet the Press that the White House was considering the option. Analysts suggest the measure could provide relief to consumers, especially in states that have also cut their own gas taxes.

Gas prices have climbed steadily since the U.S.-Israeli strikes on Iran began on February 28, with the average gallon of regular gasoline rising from $2.98 to $4.52, according to AAA. The breakdown of ceasefire talks sent oil prices surging: Brent crude rose 3.13% to $104.46 per barrel, and WTI hit $98.32.

Oil and gas stocks rallied, with Shell up 1.6%, Exxon rising 3.1%, BP gaining 2%, and Chevron climbing 1.7% in midday trading.

Trump dismissed the need for an airline bailout, claiming the industry is "doing not badly." However, budget carrier Spirit Airlines ceased operations after 34 years, citing "recent geopolitical events resulting in a massive and sustained increase in fuel prices." United Airlines raised fares by 20% in April.

Source: www.aljazeera.com