Trump Declares Iran Ceasefire on ‘Life Support,’ Proposes Gas Tax Suspension Amid Strait Closure
DUBAI, United Arab Emirates (AP) — U.S. President Donald Trump on Monday stated that the Iran ceasefire is on “life support” following his rejection of Tehran’s latest proposal, which officials indicated included some nuclear concessions. Trump also suggested suspending the federal gas tax to alleviate higher fuel prices exacerbated by the ongoing conflict.
The stalled diplomatic efforts and recent exchanges of fire threaten to plunge the Middle East back into full-scale warfare and prolong the global energy crisis ignited by the conflict. Iran maintains its control over the Strait of Hormuz, a critical waterway for international oil and gas shipments, while the U.S. continues its blockade of Iranian ports.
When questioned at the White House about the ceasefire’s status, Trump responded that it is on “life support.” “I would call it the weakest right now after reading that piece of garbage they sent us,” Trump added. “I didn’t even finish reading it.”
Trump further expressed support for a suspension of the federal tax on gasoline—just over 18 cents per gallon—and 24 cents for diesel. This measure would require approval from Congress, currently controlled by Republicans. The tax generates over $23 billion annually.
His commitment came after fuel prices surged past $4.50 a gallon last week. Trump predicted that oil and gas prices would plummet “like a rock” once hostilities conclude.
The Two Sides Remain Far Apart
Trump has demanded a significant rollback of Iran’s nuclear activities, whereas Iran is advocating for a more limited agreement that would facilitate the reopening of the strait and the lifting of the blockade prior to further negotiations.
On Monday, Trump asserted that Iran had initially agreed to allow the U.S. to assist in extracting its highly enriched uranium but subsequently withdrew this concession in its latest ceasefire proposal. “They changed their mind because they didn’t put it in the paper,” he stated.
Iran has not publicly consented to relinquish its uranium, maintaining its right to enrich and asserting that its nuclear program is entirely peaceful.
Two regional officials, speaking anonymously due to the sensitive nature of the diplomacy, informed The Associated Press that Iran has offered to dilute a portion of its highly enriched uranium and transfer the remainder to a third country. Russia has previously offered to accept it.
Trump is anticipated to leverage an upcoming trip to China this week to urge President Xi Jinping to exert pressure on Iran. Beijing, as the largest buyer of Iran’s sanctioned crude oil, possesses significant influence.
Israeli Prime Prime Minister Benjamin Netanyahu, who initiated the war with Trump on February 28, has also insisted on the complete removal of all Iran’s highly enriched uranium from the country. In an interview with CBS’ “60 Minutes” aired Sunday, he stated that if this cannot be achieved through negotiations, Israel and the U.S. agree that “we can reengage them militarily.”
Iran’s Proposal Included Far-Reaching Demands
Iran’s proposal sought U.S. recognition of its sovereignty over the Strait of Hormuz, thereby formalizing its control over the international waterway. Iran has effectively closed the strait since the war’s inception, permitting only a limited number of ships to pass and imposing tolls.
However, experts contend that such an arrangement would likely contravene international law guaranteeing freedom of navigation. This proposal is also expected to face widespread rejection from the international community. The strait was open to international traffic before the conflict.
According to Iranian state TV, Iran is also demanding war reparations from the U.S., the lifting of international sanctions, the unfreezing of Iranian assets held abroad, and an end to the war between Israel and Lebanon’s Iran-backed Hezbollah.
Israel and Hezbollah have continued their exchanges of fire, primarily in southern Lebanon, since a nominal ceasefire was established last month.
“We did not demand any concessions — the only thing we demanded was Iran’s legitimate rights,” Iranian Foreign Ministry spokesman Esmail Baghaei said Monday. “The American side still insists on its one-sided views and unreasonable demands.”
Pakistan Still Trying to Negotiate a Deal
Two regional diplomats familiar with the ongoing discussions reported that Pakistan is persisting in its efforts to broker a compromise.
One diplomat indicated that Pakistan is attempting to arrange a memorandum of understanding aimed at concluding the war and paving the way for a broader dialogue on unresolved issues between the two parties.
Pakistan had hoped to finalize the memorandum last week, but the endeavor did not materialize, and mediators are still exploring various proposals, the diplomat stated.
The diplomat, speaking anonymously to discuss the confidential diplomacy, added that Islamabad is receiving support from other regional countries in its peace initiatives.
Iran Keeps Up Its Executions
Meanwhile, Iran executed another individual accused of spying for both the CIA and Israel’s Mossad intelligence service. Iran’s state-run IRNA news agency reported that Erfan Shakourzadeh had engaged in satellite communications and relayed classified information to these intelligence services.
Iran has carried out a series of executions since nationwide protests swept the country in January. Activist groups have consistently accused Iran of conducting closed-door trials where defendants are denied a full defense. Iran’s judiciary chief has repeatedly declared that Tehran would accelerate the pace of hangings to combat its domestic and foreign adversaries.
Magdy reported from Cairo and Kim from Washington. Associated Press reporter Munir Ahmed in Islamabad contributed. Copyright 2026 The Associated Press. All rights reserved.
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