The Trump administration is expected to temporarily relax federal gasoline regulations in an effort to control rising fuel prices linked to tensions involving Iran, according to sources familiar with the discussions. The announcement could come as early as Wednesday.

The proposed move would suspend certain smog-reduction requirements that normally take effect during the summer driving season. These rules typically require refiners to produce a special summer-blend gasoline designed to reduce emissions, but the formulation is more expensive to manufacture and distribute.

By temporarily lifting the restrictions, officials aim to increase fuel supply and reduce production costs, which could help lower prices at the pump during a period of heightened energy market volatility.

The waiver would also allow fuel retailers to continue selling gasoline blended with 15% ethanol, commonly known as E15, throughout the summer months. Under normal regulations, E15 sales are restricted in many regions during the summer due to environmental concerns related to smog formation.

Supporters of the measure argue that allowing year-round E15 sales would expand fuel availability and offer a cheaper alternative for consumers. The change is expected to benefit both refiners and retailers by providing greater flexibility in fuel production and distribution.

The potential policy shift comes as energy markets react to geopolitical tensions in the Middle East, which have pushed oil prices higher and increased concerns about inflation. Rising fuel costs have become a key economic issue, particularly as the summer travel season approaches.

Officials believe the temporary waiver could help stabilize gasoline prices and ease pressure on consumers, though the impact will depend on broader market conditions and developments in global energy supply.