Trump suspends gas tax, signals prolonged Iran conflict and high energy costs

## Market Snapshot

Iran’s Enriched Uranium Surrender market is priced at 47% YES for the December 31, 2026 deadline, up from 45% 24 hours ago. WTI Crude Oil market has a 49.5% YES probability for reaching $110 in May 2026, slightly down from 50% 24 hours ago.

## Key Takeaways

– The suspension of the federal gasoline tax by President Trump suggests ongoing conflict in Iran, which appears to reduce the likelihood of Iran surrendering its enriched uranium stockpile by the end of 2026. – Market pricing suggests an increased probability of high WTI crude oil prices, with the expectation of $150 per barrel in May 2026 due to sustained high energy costs. – Trump’s action appears to indicate a lack of progress in US-Iran diplomatic negotiations, reducing the odds of a diplomatic meeting occurring by the specified date.

## Article Body

President Donald Trump has backed a temporary suspension of the federal gasoline tax, which is seen as an acknowledgment that the war in Iran may not conclude soon. The conflict, which began with U.S.-Israeli strikes on February 28, 2026, has led to significant military engagements and economic disruptions. Despite a fragile ceasefire, negotiations remain stalled after the U.S. rejected an Iranian proposal in May. Trump’s move reflects expectations of continued high energy costs amid the ongoing hostilities, with the U.S. and its allies maintaining tactical dominance but facing prolonged conflict.

## Market Interpretation

The news of Trump’s support for a gas tax suspension is consistent with a scenario where Iran does not surrender its enriched uranium stockpile by December 31, 2026. The impact on the uranium surrender market is moderate, as the decision suggests prolonged hostilities and stalled negotiations. Meanwhile, the expectation of sustained high energy prices is consistent with increased probabilities for WTI crude oil reaching $110 or higher in May 2026, indicating a high-impact development for oil price markets.

## What to Watch

Observers should monitor any developments in U.S.-Iran negotiations, particularly any potential breakthroughs or continued stalemates. Key actors include President Trump and Iranian leadership, whose decisions could significantly affect market outcomes. Additionally, changes in energy market forecasts or geopolitical developments in the region could further influence market pricing. Watch for any official announcements or shifts in policy that could alter the current trajectory of the conflict and energy markets.

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WTI crude oil prices in may 2026 bullish

3% FLAT