President Donald Trump said Monday that the ceasefire with Iran is "on life support" after Tehran delivered its counterproposal for a peace deal over the weekend, and the president made clear he rejected it outright.
"I would call it the weakest right now. After reading that piece of garbage they sent us. I didn't even finish reading it," Trump told reporters in the Oval Office. He added that Iran's failure to address nuclear weapons was the core problem. "The plan is, they cannot have a nuclear weapon, and they didn't say that in their letter."
Despite his rejection of the proposal, Trump said he has a plan to end the conflict, though he did not offer details. "You know, a lot of people said, 'Well, does he have a plan?' Yeah, of course I do have a plan. I have the best plan ever," he said.
The war with Iran has driven oil and gas prices sharply higher worldwide, with the Strait of Hormuz remaining effectively closed to shipping for months. As of Monday, the national average for a gallon of regular gasoline in the United States was $4.52, according to data from AAA, an increase of more than $1.50 since the war began.
In response to those rising prices, Trump said Monday he wants to temporarily suspend the federal gas tax. When asked by reporters whether he would pursue a suspension, he said he would reduce it "until it's appropriate." He also acknowledged the relief would be limited. "It's a small percentage, but it's, you know, it's still money," he said. Suspending the tax, which currently stands at 18.4 cents per gallon for regular gasoline and 24.4 cents per gallon for diesel, would require an act of Congress. Republican Senator Josh Hawley posted on social media Monday that he would be introducing legislation to suspend the tax.
The gas tax idea follows a similar move attempted in 2022, when then-President Joe Biden requested a monthslong federal gas tax holiday after gas prices surged following Russia's invasion of Ukraine. Congress rejected that proposal, with some lawmakers arguing it would do little to address the underlying problem.
Also on Monday, Trump was set to travel to Beijing for a meeting with Chinese President Xi Jinping, with a delegation that included some of the most prominent business executives in the United States. According to CBS News, Elon Musk, Apple's Tim Cook, BlackRock's Larry Fink, Goldman Sachs' David Solomon, and Boeing's Kelly Ortberg were among those invited to participate. Other executives from Visa, Mastercard, Citi, Meta, Qualcomm, and GE Aerospace were also on the invitation list.
Trump said the Beijing trip would focus on economic and energy matters. "I have a great relationship with President Xi," he said. "We're doing a lot of business, but it's smart business. We used to be taken advantage of for years with our previous presidents. And now we're doing great with China. We make a lot of money with China." The president had previously delayed the China trip because of the war with Iran.
Stock markets moved in mixed fashion Monday. The S&P 500 and Nasdaq traded in record territory even as Trump's rejection of Iran's peace proposal and the ongoing closure of the Strait of Hormuz left questions about how and when the conflict would end.
