Trump says he intends to suspend federal gas tax amid soaring fuel prices

US President Donald Trump on Monday said he intends to suspend the federal gasoline tax "for a period of time" and phase it back in once fuel prices decline, as pump prices continue to surge amid the Iran war.

"And yep, 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," Trump told CBS News in a phone interview. "But no, we're gonna, we'll, we'll be doing something on that. Yes."

Suspending the federal excise taxes, which stand at 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel, would require an act of Congress. Congress has so far shown little interest in suspending the levy to reduce fuel costs.

Gasoline prices have climbed more than 50% since the start of the Iran war on Feb. 28, hitting a high of over $4.52 per gallon on Sunday, according to American Automobile Association data.

Analysts say prices are likely to remain elevated as Iran continues to block access to the Strait of Hormuz, a key route for global oil and liquefied natural gas shipments.

Trump also said Iran’s latest response to a US peace proposal included concessions on its nuclear program, but added that they were "not enough."

"It’s still a very stupid proposal," he said.

Responding to Israeli Prime Minister Benjamin Netanyahu’s comment that "nobody had perfect foresight" on the Strait of Hormuz, Trump said: "I did. I knew they closed it. That's the only weapon they have."

Trump said the US could have opened the strait under "Project Freedom," the military operation that guided ships through the waterway, adding that the operation could resume and would be "much more severe."

The Strait of Hormuz has been effectively shut since late February, deepening concerns over global energy supplies and raising costs for gasoline, diesel and jet fuel.