What happened
President Donald Trump Monday said Iran’s response to the latest U.S. proposal for ending the war was a “piece of garbage” and the “ceasefire is on massive life support.” As the breakdown in negotiations sent oil prices higher, Trump proposed suspending the 18.4-cents-per-gallon federal gas tax to ameliorate the $1.50-a-gallon jump in gas prices since the war began.
Who said what
“We’re going to take off the gas tax for a period of time,” until “gas goes down,” Trump told CBS News. Pausing the tax would require approval from Congress, where there is some bipartisan support. But key lawmakers oppose the idea because it would increase the deficit by billions of dollars — or deplete the Highway Trust Fund — and others “mocked the idea as too little, too late,” The New York Times said.
Tehran’s rejected counterproposal sought U.S. recognition of its sovereignty over the Strait of Hormuz, war reparations and the lifting of international sanctions, according to Iranian state TV. With the two sides so far apart, “world leaders are confronting the prospect of a long-term energy crisis, with potentially grave economic consequences,” the Times said.
What next?
During his trip to China this week, Trump is “expected to push Beijing to help find an offramp to the stalled diplomatic talks,” The Wall Street Journal said. China “has leverage over Tehran but there could be costs attached to any help from Beijing.”
The breakdown in negotiations sent oil prices higher
