Long-term energy crisis looms as Trump says ceasefire on ‘life support’: Report

NEW YORK, (APP - UrduPoint / Pakistan Point News - 12th May, 2026) With US President Donald Trump Monday declaring the cease-fire with Iran on 'life support', nations worldwide are bracing for sustained economic pain driven by soaring energy prices," a leading American newspaper noted in an analysis.

The average price of petrol in the United States has climbed to more than $4.55 per gallon, up more than $1.50 since the war began in late February, the newspaper noted, as nations called on their citizens to conserve fuel, while the status of the Strait of Hormuz, a critical fuel shipping lane, looms over talks between Trump and China’s president, Xi Jinping, later this week.

Talks between the United States and Iran stumbled again over the weekend. Replying to an American proposal to reopen the strait and negotiate an end to the war, Iran called for U.S. war reparations, recognition of its sovereignty over the Strait of Hormuz and an end to American sanctions, Iran’s state-owned broadcaster reported on Monday.

The Iranian offer is a “piece of garbage,” Trump told reporters in the Oval Office, asserting that Tehran was in the grip of, what he called, “lunatics.” On Sunday, before any elements of the counter-proposal were made public, Trump dismissed it as “TOTALLY UNACCEPTABLE,” but did not specify his objections.

Iran’s demands for reparations and sovereignty over the strait would almost certainly be non-starters for the United States, while ending sanctions would be possible only if Iran were willing to make major concessions on its nuclear programme.

A week of strikes in the Persian Gulf had already rattled their month-old cease-fire. The truce was intended to provide an opening to negotiate a more comprehensive peace deal and end Iran’s de facto blockade of the strait, a vital waterway for oil and gas shipments.

Small-scale attacks have continued around the strait. On Sunday, the United Arab Emirate claimed it had again been attacked by Iranian drones, and last week American warships fired on military facilities along Iran’s coast.

Trump also mused out loud on Monday about suspending the Federal gasoline tax of 18.4 cents per gallon, an action that would require congressional approval.

Oil prices rose and stocks opened relatively flat for trading in the United States on Monday as investors reacted to Trump’s swift rejection of Iran’s response.

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Oil companies have posted huge profits despite the shipping disruptions; Aramco, Saudi Arabia’s national oil company, said on Monday that its first-quarter profits had jumped by 25 percent.

In an interview with the syndicated news show “Full Measure” aired on Sunday, Trump said that the U.S. was surveilling Iran’s remaining enriched uranium stockpile and would “get that at some point.” The Times said Trump's comments on the stockpiles have been inconsistent; last month, he said he didn’t care about the uranium because it was buried “so far underground.”

Trump hoped to have the conflict resolved by the time he headed to China this week to meet with Xi, who is eager to see an end to the fighting in Iran.

President Trump revealed a new plan on Monday to bring down gas prices that have soared since he chose to start a war with Iran: He wants to suspend federal gas taxes.

“I think it’s a great idea,” Trump said in a phone call with a reporter from CBS News on Monday morning. “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.” A short while later, he mused more about the plan while speaking to reporters in the Oval Office.

He did not mention that such a move would require congressional approval. Asked when or even if the administration planned to approach lawmakers on Capitol Hill about suspending the tax, a representative for the White House said simply: “We refer you to the president’s comments from earlier today.”

Even if Trump succeeded in pausing federal gas taxes, prices might come down only a smidgen: federal taxes are a little over 18 cents a gallon for gasoline and about 24 cents a gallon for diesel. Prices are up about 50 percent since the war began.

The president acknowledged in the Oval Office on Monday that the drop would be slight.

“It’s a small percentage,” he said, “but it’s, you know, it’s still money.”

Some of Trump’s foes criticized the idea as too little, too late. “Yes please do throw the peasants some more bread crumbs,” Marjorie Taylor Greene, the former representative, posted on X.

Senator Mark Kelly, Democrat of Arizona, said he approved of Trump’s proposal. “Families need help now,” Kelly wrote. “Let’s get it done.” (Kelly had first proposed this idea back in March.)