The Trump administration’s attempts to make Tax Day a key focus on Wednesday ran into hard obstacles posed by the Iran war, less than one week before a ceasefire deal expires.
Treasury Secretary Scott Bessent and Small Business Administrator Kelly Loeffler joined White House press secretary Karoline Leavitt for a news conference, during which many of the questions were focused on the war in the Middle East. Meanwhile, IRS CEO Frank Bisignano testified before the Senate Finance Committee on Wednesday.
Bessent said that he expects gas prices to decrease to somewhere in the $3 dollar range by mid September. Gas prices have risen considerably since Iran took over the Strait of Hormuz in retaliation against the joint U.S.-Israeli Operation Epic Fury, which began on Feb. 28.
“I’m optimistic that sometime between June 20 and September 20, that we can have $3 gas again,” Bessent said. “And as I said this morning, too, we are going to be watching the gas stations, because they raise prices very quickly.”
In an interview that aired Wednesday morning, President Donald Trump spoke to Fox Business Network’s Mornings with Maria, where he claimed the Iran war is “close to over.”
“I view it as very close to being over,” he said. “If I pulled up stakes right now, it would take them 20 years to rebuild that country. And we’re not finished,” Trump said. “We’ll see what happens. I think they want to make a deal very badly.”
Yet the United States blockade of the Strait of Hormuz has continued with Iran threatening to halt trade through the Red Sea, as well as the Persian Gulf and the Sea of Oman. Despite the ceasefire deal, the Strait of Hormuz is still not completely open, which has also kept gas prices high.
Bessent told reporters that the administration’s message to the American public about the economic strain is, “short-term volatility for long-term gain.”
Similarly, Leavitt echoed Trump’s message that “this is short-term disruption for the long-term strategic goal of the United States to ensure that the world’s leading state sponsor of terror cannot obtain a nuclear weapon.”
“That’s a good thing for the American people. That’s a good thing for people all over the world,” Leavitt continued.
The administration maintains that once the war has ended and the Strait of Hormuz is reopened, gas prices will decrease. But the peace talks led by Vice President JD Vance last week in Islamabad, Pakistan, failed to produce any path to ending the Iran war.
Leavitt also noted that although a second round of talks wasn’t happening soon, if talks were to happen, they would likely take place in Islamabad.
“Nothing is official until you hear it from us here at the White House, but we feel good about the prospects of a deal,” she said. “The president mentioned that in his interview yesterday, and it’s obviously in the best interest of Iran to meet the president’s demands. I think he’s made his red lines in these negotiations very clear to the other side, and so we are continuing to see how these conversations go.”
Despite the dominance of the Iran war, the administration continues to message around Tax Day.
Trump has frequently touted the no-tax-on-tips proposal baked into the One Big Beautiful Bill Act. On Monday, Sharon Simmons, a grandmother who supplements her family’s income through DoorDash, personally delivered McDonald’s to Trump.
The president will also head to Las Vegas on Thursday to tout the no-tax-on-tips policy.
PRESSURE BUILDS ON TRUMP TO FIND OFF-RAMP ON IRAN WAR
“With Tax Day officially here, the numbers prove these tax cuts have been nothing short of extraordinary,” Leavitt said. “More than 53 million filers claimed at least one of President Trump’s signature new tax cuts. The average refund this filing season is more than $3,400.”