President Donald Trump on Tuesday said he is considering suspending the federal gas tax ahead of the November midterms.

Trump Considers Suspension Amid High Prices

Gas prices have remained elevated, with AAA putting the national average for regular at $4.3685 per gallon on Tuesday, more than $1 above the level from a year earlier.

The federal charge totals 18.4 cents per gallon for gasoline and 24.4 cents for diesel, and removing it would trim roughly 4% off the cost of a gallon of regular, according to a report by The Guardian.

Here's What Prediction Market Is Saying

Amid this, the prediction market is betting on whether the Trump admin will suspend the federal gas tax.

Data from Kalshi, a federally authorized betting platform, shows that over $360,000 has been bet on the contract "Will the federal gas tax be suspended?"

Bettors are not very confident about the federal gas tax being suspended. They have placed a 12% probability that the federal gas tax will be suspended before Jan. 1, 2027.

Disclaimer: Kalshi and MarketDash have an existing data collaboration agreement.

Oil Prices Rise

Meanwhile, oil prices continued climbing amid disruptions caused by the Iran war. The Strait of Hormuz, which handled roughly 20% of global oil supplies before the conflict, has also faced disruptions.

Late in the day, WTI crude oil rose 0.82% to $90.18 per barrel, while Brent crude gained 0.97% to $101.56 per barrel.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.