Gas prices are high. But do the numbers support suspending state gas taxes?

With the average price of a gallon of gas topping $4 nationally, some federal and state officials have talked of temporarily reducing motor fuel taxes to provide relief to motorists.

So far, Georgia and Utah are the only states to suspend all or part of their gas taxes as the war in Iran has pushed fuel prices higher. Others are considering it. But there are a variety of reasons that policymakers may not relax gas taxes, including concerns about government finances, doubts about the action's effectiveness and uncertainty about how long the war will last.

Here's a look, by the numbers, at the debate:

The two states to suspend gas taxes this year took significantly different approaches. Georgia's 60-day suspension of its 33-cent-a-gallon gas tax took effect once Republican Gov Brian Kemp signed it into law on March 20, making it the first state to act since the war started. Three days later, Republican Utah Gov. Spencer Cox signed a law temporarily trimming 6 cents off the state's 38-cent-a-gallon fuel tax. But the six-month reduction won't begin until July 1.

Retail gas stations have charged consumers an average of 38 cents per gallon above wholesale prices over the past five years, according to Jeff Lenard, a spokesperson for the National Association of Convenience Stores. Their profits after expenses often are less than half that, he said. Meanwhile, the daily price for a barrel of oil has swung dramatically during the war with Iran — sometimes by the equivalent of around 40 cents a gallon, Lenard said.

Why do those numbers matter? They highlight the complexity of setting gas prices. When a gas tax is suspended, motorists may not see an equivalent reduction in retail prices. That's made Republican Florida Gov. Ron DeSantis hesitant to repeat a gas tax suspension he approved when prices last spiked in 2022.

“Our ability to influence the fuel prices are really marginal at best,” DeSantis said in March, adding: “I don't think the consumer really felt relief.”

California charges a nationally high gas tax of 61 cents per gallon, with additional fees on top of that. The tax contributes to California's highest-in-the-nation gas prices, which averaged $5.89 a gallon on Wednesday, according to AAA. Several Democratic and Republican gubernatorial candidates have called for suspending the gas tax. But the proposal hasn't gained traction in the Democratic-led Legislature, where some are concerned about how to make up for the lost revenue.

Republicans in Maryland pushed for a 30-day gas-tax suspension. But their attempts were rejected by the Democratic-led General Assembly. A spokesperson for Democratic Gov. Wes Moore said a one-month suspension could have blown a $100 million hole in the state's transportation budget even as officials already were cutting spending and shifting money to make up for a projected shortfall in the state's overall budget.

A better approach would be to end the war, said Moore spokesperson Ammar Moussa, adding: “The best way to bring prices down is to address the source of the pain.”

Since the war began on Feb. 28, Trump has repeatedly has said it could be over soon while also threatening to widen the conflict.

Whether states have the money to make up for lost fuel taxes is a pivotal question. Georgia is dipping into its surplus. In Connecticut, Democratic state Senate leaders have suggested that Gov. Ned Lamont could tap into the roughly $330 million remaining in an emergency fund meant to respond to federal government actions to help offset a proposed one-month suspension of the state’s 25-cent-a-gallon gas tax.

“The fund was created precisely for situations like this: when federal actions create hardship for Connecticut families,” Senate President Pro Tem Martin Looney and Majority Leader Bob Duff said in a statement.

A spokesman for the Democratic governor said Lamont is willing to work with lawmakers on “a smart and strategic pause to the state's gas tax.”

Gas taxes generally pay for building, expanding and repairing roads and bridges. Unless funds are shifted from elsewhere, suspending a gas tax means less money for transportation projects, including some that may already have been budgeted.

In South Carolina, the state gas tax provides about $800 million yearly, helping to fund nearly $7 billion of projects ranging from safety improvements on two-lane roads to a massive overhaul of interstate interchanges. Republican Gov. Henry McMaster worries that major projects would take longer and cost more if tax revenue were cut. He dismissed the suspension of gas taxes as a “sort of knee-jerk reaction.”

“We’d like them all to be lower and lower,” McMaster said, “but that’s one we should not take any money out of.”

Associated Press writers Jeffrey Collins, Susan Haigh and Brian Witte contributed to this report.

Fuel transport truck driver Terry Bowden refills at a gas station, Monday, March 30, 2026, in Nashville, Tenn. (AP Photo/George Walker IV)

A Chevron gas station in Alameda, Calif. displays gas prices on March 23, 2026. (AP Photo/Terry Chea)

Vehicles drive past a CITGO gas station in the Queens borough of New York, Tuesday, March 31, 2026. (AP Photo/Yuki Iwamura)

A sign shows the price of gas at a store, Tuesday, March 31, 2026, in Freeport, Maine. (AP Photo/Robert F. Bukaty)

U.S. President Donald Trump on Wednesday claimed Iran’s president wanted a ceasefire ahead of his speech to the American people. Trump made the claim on his Truth Social website. Iran’s Foreign Ministry spokesperson said Trump’s remarks were “false and baseless.”

The aircraft carrier USS George H.W. Bush is slated to go to the Middle East along with three destroyers, two U.S. officials said. The carrier strike group consists of more than 6,000 sailors. It comes as thousands of soldiers from the 82nd Airborne Division have also begun arriving in the Middle East, according to two other U.S. officials.

Meanwhile, U.S. gas prices jumped past an average of $4 a gallon for the first time since 2022 on Tuesday, as the Iran war continues to push fuel prices higher worldwide. Analysts say those high fuel costs will trickle into groceries as businesses’ transportation and packaging costs pile up.

Here is the latest:

Iran’s President Masoud Pezeshkian in a message to American people said both confrontation and engagement between Iran and the U.S. are accessible, adding that Iran will endure any aggression by the U.S.

“Today, the world stands at crossroads. Continuing along the path of confrontation is more costly and futile than ever before. The choice between confrontation and engagement is both real and consequential; its outcome will shape the future for generations to come, “ said Pezeshkian. “Throughout its millennia of proud history, Iran has outlasted many aggressors. All that remains of them are tarnished names in history, while Iran endures — resilient, dignified, and proud.”

Pezeshkina did not mention a ceasefire offer last week by President Trump, though he accused Israel of dragging the U.S. into a war against Iran.

“Is it not also the case that America has entered this aggression as a proxy for Israel, influenced and manipulated by that regime? ” asked Pezeshkian.

David Miliband, President of the International Rescue Committee made these remarks during an online briefing with journalists after visiting Lebanon and Syria.

More than one million Lebanese were displaced during the past month in the latest conflict between Israel and the Hezbollah militant group. Israel has issued evacuation orders for large swaths of southern and eastern Lebanon, as well as Beirut’s southern suburbs. Only a small portion of them are staying in government-run public schools turned-shelters, while others stay with family or even in tents on the streets.

“There is nothing like driving in front of the Lebanon yacht club and in front of it are Lebanese in tents who are displaced,” said Miliband, who decried the tiny country’s situation as a “silent emergency that is getting very little attention.”

China on Wednesday said it would stay in “close communication with Pakistan and relevant parties” on the Iran war and “play a constructive role in promoting the end of hostilities.”

It comes a day after China’s foreign minister met Pakistan’s top diplomat in Beijing and said China supported efforts to deescalate tensions.

Chinese Foreign Minister Wang Yi told Pakistani Foreign Minister Ishaq Dar that it would not be an easy task and that China would be “willing to work with Pakistan” to end the “flames of war” as soon as possible and open the “window to peace talks.”

Wang said Pakistan’s efforts were in the interest of all sides, including averting spillover effects, preventing further casualties, stabilizing international energy security and protecting supply chains.

Following their meeting Tuesday, the two governments put forward a five-point proposal, including ceasing hostilities, starting peace talks, protecting civilian targets and reopening the Strait of Hormuz.

NATO is getting defended on a bipartisan basis by Sen. Mitch McConnell, R-Ky., and Sen. Chris Coons, D-Del., ahead of Trump’s address to the nation on Wednesday night.

Trump is expected to criticize NATO members for not joining the U.S. in its war with Iran.

McConnell and Coons said in a joint statement that “NATO is the most successful military alliance in history” and stressed how its members “fought and died,” along with U.S. forces in Afghanistan and Iraq.

“Americans are safer when NATO is strong and united,” the statement said. “The Senate will continue to support the alliance for the peace and protection it provides America, Europe, and the World.”

The National Defense Authorization Act in 2023 has provision that requires a two-thirds approval from the Senate in order to leave NATO or a separate measure by Congress, limiting the president’s ability to do so unilaterally.

Bahrain’s U.N. Ambassador Jamal Alrowaiei accused Iran of “economic terrorism” and violating international law. And he urged adoption of a U.N. resolution that would authorize countries “to use all necessary means” to ensure safe navigation through the Strait of Hormuz, the Gulf and the Gulf of Oman.

He expressed hope at a U.N. news conference that the Security Council will adopt the resolution “as soon as possible,” and as early as Thursday. But Russia, China and France objected to the latest draft, and negotiations were continuing.

Alrowaiei, the Arab representative on the council and its president for April, said Gulf countries had tried “to build bridges of peace with Iran,” and the attacks they were subjected to immediately after the Israeli-U.S. airstrikes on Feb. 28 were “shocking and premeditated.”

He said Bahrain, home to the U.S. Fifth Fleet, has been targeted by 186 missiles and 419 drones and has suffered damage to desalination plants, hotels, the airport and other civilian infrastructure.

AP footage in the Iranian capital of Tehran showed large plumes of smoke billowing over the city on Wednesday afternoon following U.S.- Israeli strikes, as the war in the Middle East completes its first month and strikes on Iran continue unabated.

Also Wednesday, the Israeli military said that it had completed a wave of strikes against “dozens of military infrastructure sites of the Iranian terror regime in the heart of Tehran.”

The president has said one of his primary goals of the war was to stop Iran from getting a nuclear weapon, and he told Reuters on Wednesday that has been achieved, though it isn’t clear how.

Iran’s stockpile of enriched uranium that could potentially be used to build nuclear weapons is believed to be buried under the rubble of a mountain facility that was hit during strikes last June — and that hasn’t changed since the war with Iran began this year. Trump has said the U.S. would move to take the uranium if it reaches a deal with Iran.

But he said Wednesday that the uranium is “so far ⁠underground, I don’t care about that.”

“We’ll always be watching it by satellite,” he said.

Trump also said Iran is now “incapable” of developing a nuclear weapon.

Vice President JD Vance has been speaking to intermediaries about Iran as recently as Tuesday and delivered a message that Trump is impatient and that there will be growing pressure on Iranian infrastructure if they don’t make a deal, according to a person familiar with the talks who was not authorized to speak publicly and spoke on condition of anonymity.

Trump directed Vance to communicate privately that he is open to a ceasefire as long as certain demands are met.

The president told Reuters in a telephone interview ahead of his televised address Wednesday night that the U.S. would be finishing its war in Iran soon, but he wouldn’t give a timeline.

“I can’t tell you exactly ... we’re going to be out pretty quickly,” he said.

But once the U.S. leaves, he said “We’ll come back to do spot hits” on targets, as needed.

Almost 4 million barrels of crude oil a day transited the Bab el-Mandeb Strait in March, up from about 3 million barrels the prior month and the highest level since October 2023, maritime data firm Kpler said Wednesday.

The increase came as Saudi Arabia sent crude through a pipeline across its country to the Red Sea port of Yanbu after the virtual closure of the Strait of Hormuz. Saudi Aramco operates the East-West pipeline from the Aqaiq oil processing center near the Persian Gulf to Yanbu. It has enabled the Saudis to maintain some exports blocked by the Hormuz closure, but it lacks the capacity to fully compensate.

Before the war, Yanbu shipped 750,000 to 850,000 barrels a day. Of the crude passing through Bab el-Mandeb in March, 1.75 million barrels a day were loaded there, the data showed.

Most of the remainder transiting the strait in March was Russian oil bound for Asia, Kpler said.

Somalia’s government on Wednesday said it has limited control over fuel pricing, as imports are handled by private companies in a largely liberalized market.

Dahir Shire Mohamed, Minister of Petroleum and Mineral Resources, said prices have surged due to “external shocks,” linking the increase to “regional tensions affecting global supply routes.”

The price per liter has increased from $0.70 to $1.75, marking a 150% increase.

Tanzania’s Energy Ministry on Wednesday announced a 33% increase in fuel prices, attributing it to the conflict in Iran, saying it had affected supply and shipping. The ministry urged Tanzanians to use the available fuel “carefully and efficiently.”

American officials have given mediators “clear assurances” that Iranian Foreign Minister Abbas Araqchi and Parliamentary Speaker Mohammad Baqer ‌Qalibaf won’t be targeted amid ongoing diplomatic efforts to stop the Iran war, according to two regional officials and one person briefed on the matter.

The person briefed said that Pakistan asked Washington to intervene to get Israel to remove the two officials from its hit list.

Israel’s prime minister’s office and the military didn’t respond to request for comment.

The assurances were also given at the request of other regional mediators to facilitate communications with Iran and push for indirect talks, said one of the officials, who is involved in the mediation efforts. All three spoke to The Associated Press on the condition of anonymity because they were not authorized to discuss sensitive diplomatic conversations.

A Gulf diplomat, briefed on the matter, said the U.S. assurances were “crucial” to ensure neither the foreign minister or the speaker or their teams won’t be assassinated. Reuters was the first to report that the two Iranian leaders were removed from a supposed hit list.

The two leaders spoke via phone in a “constructive” conversation, said Alexander Stubb, the Finnish leader.

“We exchanged thoughts on NATO, Ukraine, and Iran,” Stubb wrote in an X post. “It’s good to seek solutions to problems together.”

The call comes as the U.S. president is increasingly venting about allies and what he says is their unwillingness to get involved in the war in Iran, particularly in securing the Strait of Hormuz, prompting him to again talk about the U.S. leaving NATO.

Syrian state television said Wednesday that its crew reporting in the Quneitra Province in southern Syria was targeted by the Israeli military, a claim the military later denied.

A video aired by the station showed a journalist in a press vest falling to the ground following what the person filming said was “a second shelling.”

The Israeli military said the “journalists approached the scene only after the fire had been carried out and were not the target of the activity.” It wasn’t immediately clear what the military was targeting.

A revised draft of Bahrain’s proposal — obtained by The Associated Press — to protect commercial shipping in and around the critical waterway has removed explicit authorization for U.N.-backed military action while retaining language associated with it. A vote on the new draft is expected Thursday, according to a U.N. diplomat who wasn’t authorized to comment about plans not yet made public and spoke on the condition of anonymity.

The original text had been placed under Chapter Seven of the U.N. Charter, which allows the council to authorize actions ranging from sanctions to the use of force. But it faced opposition from Iran’s allies on the Security Council, China and Russia, which are both veto-wielding members. The U.S. and the Gulf countries, including the United Arab Emirates, had been lobbying on behalf of the proposal.

The diplomat said the watered-down language will still be a hard swallow for China and Russia but it’s expected to get the necessary votes to pass the 15-member council.

— Farnoush Amiri

President Trump says he’s strongly considering pulling the United States out of NATO, ratcheting up his criticism of European allies and exposing a wider rift in the trans-Atlantic alliance — this time over the Iran war.

While Trump’s talk of a possible NATO pullout dates back years, the comments to The Telegraph newspaper in the U.K., published Wednesday, were among the clearest and most disparaging yet — suggesting the fracture has deepened perhaps to a point of no return.

Asked whether he would reconsider U.S. membership in the alliance after the conflict in the Middle East ends, Trump replied: “Oh yes, I would say (it’s) beyond reconsideration.”

NATO didn’t provide immediate comment when contacted by The Associated Press.

U.K. Prime Minister Keir Starmer said his government was “fully committed to NATO” and called it “the single most effective military alliance the world has ever seen.”

Many European leaders have felt political pressure over the war, which faces opposition in their countries and has sent petroleum prices soaring as Iran has effectively shut the Strait of Hormuz.

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Macron, who held talks with Japanese Prime Minister Sanae Takaichi, said Wednesday they both believe in international law, the international order and the democratic values, adding: “This is why ... we both advocate for a return to peace, a ceasefire, calm, and free passage through the Strait of Hormuz.”

Takaichi said the two leaders agreed on the importance of quickly de-escalating the conflict and to secure the safety of the vital waterway and the stable supply of goods.

“With the international environment increasingly severe, I believe it is especially meaningful for the Japanese and French leaders to deepen our friendship and cooperation,” Takaichi said at a joint news conference at the Akasaka Palace in Tokyo.

The leaders said they also agreed to deepen their cooperation in defense, rare earths development, nuclear energy, space and other areas.

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Shelly Kittleson’s mother, 72-year-old Barb Kittleson, said she last exchanged emails with her daughter Monday. Shelly Kittleson sent photos of herself from Iraq, her mother said.

Barb Kittleson said she heard about the kidnapping from a news report Tuesday and was visited by the FBI at her home in Mount Horeb, Wisconsin, on Tuesday night.

When asked how she felt about the kidnapping she said, “Terrible. Scared. I’ll pray for her.”

She said her hope is for her daughter “not to be hurt and be OK.”

Shelly Kittleson left her home in Wisconsin in 1995, when she was 19 years old, and first headed to Italy where she went to school and worked as a nanny, her mother said. She spent about 10 years in Italy before eventually settling in Iraq, Barb Kittleson said.

Barb Kittleson said she had not seen her daughter in person since 2002 but they exchange emails a couple of times a week, including on Monday when her daughter sent her a couple of pictures.

Should the U.S. decide to send in military forces to secure Iran’s uranium stockpile, it would be a complex, risky and lengthy operation, fraught with radiation and chemical dangers, according to experts and former government officials.

President Trump has offered shifting reasons for the war in Iran but has consistently said a primary objective is ensuring the country will “never have a nuclear weapon.” Less clear is how far he’s willing to go to seize Iran’s nuclear material.

Given the risks of inserting as many as 1,000 specially trained forces into a war zone to remove the stockpile, another option would be a negotiated settlement with Iran that would allow the material to be surrendered and secured without using force.

Iran has 972 pounds (440.9 kilograms) of uranium that’s enriched up to 60% purity, a short, technical step from weapons-grade levels of 90%, according to the International Atomic Energy Agency, the U.N.’s nuclear watchdog agency.

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Sirens sounded across central Israel in multiple rounds within minutes Wednesday afternoon. Associated Press reporters heard loud booms in Tel Aviv as the windows of buildings shook from the reverberations.

Iran’s Foreign Ministry spokesperson, Esmail Baghaei, called Trump’s claim “false and baseless,” according to a report on Iranian state television.

Also, Iran’s paramilitary Revolutionary Guard separately issued a statement saying the Strait of Hormuz “is firmly and decisively under the control” of its forces.

“This strait will not be opened to the enemies of this nation through the ridiculous spectacle by the president of the United States,” it added.

Stocks are climbing worldwide, and oil prices are easing Wednesday as hopes build that the war with Iran could end soon. Some of the moves are tentative, though, after financial markets have already seen similar bouts of optimism get quickly undercut several times.

The S&P 500 rose 0.6% and added to its leap from the day before, which was its best since last spring. That followed even bigger gains for stock markets across Europe and Asia, including an 8.4% surge in South Korea, which were catching up to Wall Street’s rally from Tuesday.

The Dow Jones Industrial Average was up 292 points, or 0.6%, as of 10 a.m. Eastern time, and the Nasdaq composite was 1% higher.

Oil prices also fell back toward $100 per barrel after President Donald Trump said shortly before Wall Street began trading that Iran “has just asked the United States of America for a CEASEFIRE!”

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In addition to gas and oil stuck in the Persian gulf, urgent food aid destined for Sudan and Afghanistan is also facing severe delays, the UN agency for hunger emergencies, World Food Program, warned.

“Think of special nutritious foods required for Sudan,” Corinne Fleischer, WFP director of supply chain, told the AP. “Mothers and children are malnourished and they need this vitamin and mineral enriched food. We produced this in Pakistan as one of the countries. That is now stuck there.”

Fleischer explained that due to the risks of attacks in the southern part of the Red Sea, carriers now have to go all the way down through the Cape of Good Hope in Africa to reach West Africa.

Members of civic groups hold signs against the U.S. and Israel attacks on Iran near the U.S. Embassy in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Lee Jin-man)

Israel's rescue teams and residents take shelter as sirens sounds next to a site struck by an Iranian missile in Bnei Brak, Wednesday, April 1, 2026. (AP Photo/Oded Balilty)

People stand near a damaged van beside scattered debris following an Israeli strike in Beirut, Lebanon, Wednesday, April 1, 2026. (AP Photo/Hassan Ammar)

A firefighter extinguishes a car at the site of Israeli airstrikes, in Beirut, Lebanon, Wednesday, April 1, 2026. (AP Photo/Hussein Malla)

Residents and Israeli security forces inspect a site struck by an Iranian missile in Petah Tikva, Israel, Tuesday, March 31, 2026. (AP Photo/Ohad Zwigenberg)

A man inspect the wreckage of an Iranian missile that landed near the West Bank village of Marda, Tuesday, March 31, 2026. (AP Photo/Majdi Mohammed)

Smoke rises after an Israeli airstrike hits a building near the airport road in Beirut, Lebanon, Tuesday, March 31, 2026. (AP Photo/Hussein Malla)

A family who fled Israeli shelling in southern Lebanon warm themselves by a bonfire next to tents used as shelters in Beirut, Lebanon, Tuesday, March 31, 2026. (AP Photo/Emilio Morenatti)