A driver finishes refueling a vehicle at a GetGo gas station in Columbus, Ohio, May 11, 2026.<\/p>\n
Brian Kaiser | Bloomberg | Getty Images<\/p>\n
Gasoline prices are expected to go over $5 a gallon, according to Kalshi traders, after President Donald Trump<\/a> on Sunday turned down Iran’s counterproposal to end the war.<\/p>\n 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<\/a> on Sunday that Iran’s counterproposal to end the war in the Middle East was “totally unacceptable.”<\/p>\n The president later said on Monday that the U.S. ceasefire with Iran was “on massive life support<\/a>.” <\/p>\n Oil prices jumped on Monday, with West Texas Intermediate futures<\/a> jumping nearly 3% to top $98 a barrel, while Brent crude futures<\/a> advanced close to 3% to $104.27.<\/p>\n Iran had originally rejected the U.S. demands about its nuclear program and enriched uranium, providing its own negotiations instead, The Wall Street Journal<\/a> 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<\/a>.\u00a0<\/p>\n Nationally, the average gasoline price per gallon rose by roughly 6 cents from a week ago to $4.52, according to data from AAA<\/a>. It has risen about 38 cents from a month ago and it has gained about $1.38 from a year back.\u00a0<\/p>\n Trump also said on Monday that he would “reduce” the federal gasoline tax, garnering support<\/a> from congressional Republicans. This came after he told CBS News<\/a> in an interview that he wanted to suspend the levy “for a period of time.”<\/p>\n “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.”<\/p>\n \u2014 CNBC’s Garrett Downs contributed reporting.<\/p>\n Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.<\/p>\n