Trump says Iran ceasefire is on 'life support' and proposes gas tax
pause as strait stays closed
[May 12, 2026]
By JON GAMBRELL, SAMY MAGDY and SEUNG MIN KIM
DUBAI, United Arab Emirates (AP) — U.S. President Donald Trump on Monday
said the Iran ceasefire is on “life support” after rejecting Tehran’s
latest proposal, which officials said included some nuclear concessions.
Trump also proposed suspending the federal gas tax to help with higher
fuel prices caused by the war.
The stalled diplomacy and recent exchanges of fire could tip the Middle
East back into open warfare and prolong the worldwide energy crisis
sparked by the conflict. Iran still has a chokehold on the Strait of
Hormuz, a vital waterway for global oil and gas shipments, and America
is blockading Iranian ports.
Asked at the White House if the ceasefire was still in effect, Trump
said it’s on “life support.”
“I would call it the weakest right now after reading that piece of
garbage they sent us,” Trump added. “I didn’t even finish reading it.”
Trump also said he supported a suspension of the federal tax on gasoline
— just over 18 cents per gallon and 24 cents for diesel. Congress, which
is controlled by Republicans, would have to approve. The tax brings in
more than $23 billion each year.
His pledge came after fuel prices surged past $4.50 a gallon last week.
Trump predicted that the price of oil and gas would drop “like a rock”
as soon as hostilities are over.
The two sides remain far apart
Trump has demanded a major rollback of Iran’s nuclear activities, while
Iran is pushing for a more limited agreement that would reopen the
strait and lift the blockade ahead of further negotiations.
On Monday, Trump claimed that Iran had said it would allow the U.S. to
come in and help extract its highly enriched uranium but went back on
that in its latest ceasefire proposal. “They changed their mind because
they didn’t put it in the paper,” he said.
Iran has not publicly agreed to give up its uranium, saying it has a
right to enrich and that its nuclear program is entirely peaceful.
Two regional officials told The Associated Press that Iran has offered
to dilute part of its highly enriched uranium and transport the rest to
a third country. Russia has previously offered to take it. The officials
spoke on condition of anonymity to discuss the sensitive diplomacy.
Trump is expected to use a trip this week to China to urge President Xi
Jinping to pressure Iran. Beijing is the biggest buyer of Iran’s
sanctioned crude oil, giving it leverage.
Israeli Prime Minister Benjamin Netanyahu, who launched the war with
Trump on Feb. 28, has also demanded that all of Iran's highly enriched
uranium be removed from the country.
He told CBS’ “60 Minutes” in an interview that aired Sunday that if that
can't be accomplished with negotiations, Israel and the U.S. agree “we
can reengage them militarily.”
Iran's proposal included far-reaching demands
Iran's proposal asked that the U.S. recognize its sovereignty over the
Strait of Hormuz, formalizing its control over the international
waterway. Iran has effectively closed the strait since the start of the
war, allowing only a small number of ships to pass and charging tolls.
[to top of second column]
|
President Donald Trump speaks to reporters at an event about
maternal healthcare, Monday, May 11, 2026, in the Oval Office of the
White House, in Washington. (AP Photo/Jacquelyn Martin)
But experts say such an arrangement would likely violate
international law that provides for freedom of navigation. That
proposal is also likely to be widely rejected by the international
community. The strait was open to international traffic before the
war.
Iran is also demanding war reparations from the U.S., the lifting of
international sanctions, the unfreezing of Iranian assets held
abroad and an end to the war between Israel and Lebanon's
Iran-backed Hezbollah, according to Iranian state TV.
Israel and Hezbollah have continued to exchange blows, mainly in
southern Lebanon, since a nominal ceasefire took hold last month.
“We did not demand any concessions — the only thing we demanded was
Iran’s legitimate rights,” Iranian Foreign Ministry spokesman Esmail
Baghaei said Monday. “The American side still insists on its
one-sided views and unreasonable demands.”
Pakistan still trying to negotiate a deal
Two regional diplomats familiar with the ongoing talks said that
Pakistan was continuing its efforts to broker a compromise.
One of the diplomats said Pakistan was trying to arrange a
memorandum of understanding aimed at ending the war and paving the
way for a broader dialogue on issues where the two sides remain
divided.
Pakistan had hoped to help finalize the memorandum last week, but
the effort did not materialize, and mediators are still working on
various proposals, the diplomat said.
The diplomat, speaking on condition of anonymity to discuss the
behind-the-scenes diplomacy, added that Islamabad is receiving
support from other regional countries in its peace efforts.
Iran keeps up its executions
Meanwhile, Iran executed another man it accused of spying for both
the CIA and Israel's Mossad intelligence service. Iran's state-run
IRNA news agency said Erfan Shakourzadeh had worked on satellite
communications and relayed classified information to those
intelligence services.
Iran has carried out a string of executions since nationwide
protests swept the country in January. Activist groups have long
accused Iran of carrying out closed-door trials during which
defendants are unable to fully defend themselves. Iran's judiciary
chief has repeatedly said that Tehran would increase the speed with
which it carried out hangings to fight back against its enemies at
home and abroad.
___
Magdy reported from Cairo and Kim from Washington. Associated Press
reporter Munir Ahmed in Islamabad contributed.
All contents © copyright 2026 Associated Press. All rights reserved |
