A driver finishes refueling a vehicle at a GetGo gas station in Columbus, Ohio, May 11, 2026.
Brian Kaiser | Bloomberg | Getty Images
Gasoline prices are expected to go over $5 a gallon, according to Kalshi traders, after President Donald Trump on Sunday turned down Iran’s counterproposal to end the war.
Over the past 24 hours, Kalshi traders ramped up their bets that gasoline prices would surpass $5.60 per gallon. The spike in activity comes after Trump said in a Truth Social post on Sunday that Iran’s counterproposal to end the war in the Middle East was “totally unacceptable.”
The president later said on Monday that the U.S. ceasefire with Iran was “on massive life support.”
Oil prices jumped on Monday, with West Texas Intermediate futures jumping nearly 3% to top $98 a barrel, while Brent crude futures advanced close to 3% to $104.27.
Iran had originally rejected the U.S. demands about its nuclear program and enriched uranium, providing its own negotiations instead, The Wall Street Journal reported. Those demands included Iran having sovereignty over the Strait of Hormuz, an end to sanctions and release of Iranian assets, the country’s state media reported, according to the Associated Press.
Nationally, the average gasoline price per gallon rose by roughly 6 cents from a week ago to $4.52, according to data from AAA. It has risen about 38 cents from a month ago and it has gained about $1.38 from a year back.
Trump also said on Monday that he would “reduce” the federal gasoline tax, garnering support from congressional Republicans. This came after he told CBS News in an interview that he wanted to suspend the levy “for a period of time.”
“I think it’s a great idea,” the president told CBS. “Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in.”
— CNBC’s Garrett Downs contributed reporting.
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