Oil prices have climbed to around $107 per barrel following rising tensions linked to the ongoing US-Iran conflict, intensifying pressure on fuel markets and pushing up transport and living costs in the United States.

In response, US President Donald Trump has suggested a temporary suspension of federal fuel taxes for up to 90 days. The proposed relief would cover both gasoline and diesel duties and is aimed at reducing the immediate burden on consumers facing higher pump prices.

The increase in crude prices has been partly driven by disruptions affecting global oil flows, especially through the Strait of Hormuz, a critical passage for a large share of the world’s petroleum supply. Limited access through the route has tightened global supply and contributed to the price surge.

As fuel costs rise, American households are already feeling the impact, with petrol prices reaching multi-year highs and inflation accelerating to levels not seen in recent years. The situation has also raised concerns about broader economic stability, as higher energy prices begin to feed into other sectors.

The proposed tax suspension has sparked debate among US lawmakers. Senate leaders, including John Thune, have questioned the move, arguing that fuel tax revenue is essential for maintaining roads and other infrastructure projects.

Some lawmakers had previously floated similar proposals, including Senator Mark Kelly, who supported a temporary pause on fuel taxes to provide short-term relief for consumers.

Meanwhile, rising jet fuel costs have also placed strain on airlines, with some operators reportedly seeking financial assistance as operational costs increase. Analysts say the energy shock reflects how geopolitical tensions continue to disrupt global markets, with further uncertainty expected if the situation persists.