President Donald Trump has publicly criticized oil giants ExxonMobil and Chevron for posting record profits while American motorists face gasoline prices averaging $4.10 per gallon — up more than 30% since the Iran conflict intensified.
Trump's Criticism of Big Oil
"I don't like it," Trump told reporters Monday. "Chevron, too much money. ExxonMobil, too much. Too much money." The comments marked an unusual break from Trump's traditionally close relationship with the US oil industry.
The criticism came days after both companies announced robust second-quarter earnings boosted by higher oil prices from the ongoing Iran conflict. Chevron posted its highest quarterly profit in at least six years, while Valero Energy recorded its strongest earnings since the 2022 energy crisis.
The Chevron CEO Confrontation
Trump also criticized Chevron CEO Mike Wirth after the executive appeared on Fox News. In a Truth Social post, Trump accused Wirth of failing to acknowledge his administration's role in supporting the oil industry.
"The only thing he conveniently forgot to mention is that, without the genius, foresight, strength, and stability, of the TRUMP Administration, the Oil Industry, and our Country itself, would be DEAD!" Trump wrote.
Why Gas Prices Are So High
The American Petroleum Institute defended the industry, saying higher prices are driven by global market conditions. "Today's higher prices are driven by global supply, demand and continued uncertainty around the Strait of Hormuz and other critical shipping lanes — not by any one company," a spokesperson told Reuters.
The Strait of Hormuz, which handles about 20% of global oil shipments, has been partially blockaded since the conflict began. This has disrupted supply chains and pushed crude prices higher worldwide.
What Trump Wants Oil Companies to Do
"They better cut the retail price, the consumer price," Trump told reporters. He predicted oil prices would "drop through the floor" once the Iran conflict ends.
However, analysts note that retail gas prices typically lag behind crude oil price changes by weeks or even months. Even if oil prices fall, American drivers may not see relief at the pump anytime soon.
Political Implications for Midterms
Rising gas prices have become a growing political challenge for Republicans ahead of November's midterm elections. Average US gas prices have risen more than 30% since the Iran conflict intensified earlier this year.
The situation puts Trump in a difficult position. He has championed expanded US oil production as a cornerstone of his energy policy, but high prices at the pump are angering voters.