A driver finishes refueling his vehicle at a GetGo gas station on May 11, 2026 in Columbus, Ohio.
Brian Kaiser | Bloomberg | Getty Images
Gasoline prices are expected to rise above $5 a gallon after President Donald Trump on Sunday rejected Iran’s counteroffer to end the war, traders in Qarshi said.
Over the past 24 hours, Kalsi traders have strengthened their belief that gas prices will rise above $5.60 per gallon. The surge in activity comes after President Trump said in a post on Truth Social on Sunday that Iran’s counter-offer to end the Middle East war is “completely unacceptable.”
The president then said Monday that the U.S. ceasefire with Iran was done “on massive life support.”
As oil prices soared on Monday, West Texas Intermediate Futures While the price rose nearly 3% to above $98 per barrel, brent crude oil futures It rose nearly 3% to $104.27.
Iran initially rejected U.S. demands regarding its nuclear program and enriched uranium, instead offering its own terms, The Wall Street Journal reported. Conditions included Iran having sovereignty over the Strait of Hormuz, ending sanctions and releasing Iranian assets, the country’s state media reported, according to the Associated Press.
The average price of a gallon of gasoline nationwide rose about 6 cents from a week ago to $4.52, according to AAA data. That’s up about 38 cents from a month ago and about $1.38 from a year ago.
President Trump also said Monday he would “lower” the federal gas tax, drawing support from Republicans in Congress. His comments came after he said in an interview with CBS News that he wanted to suspend the levy “for a period of time.”
“I think it’s a great idea,” the president told CBS. “Well, we’re going to eliminate the gas tax for a certain period of time and then phase it back in as gas prices go down.”
—CNBC’s Garrett Downs contributed reporting.
Disclosure: CNBC and Kalsi have a commercial relationship that includes customer acquisition and minority ownership.
