Donald Trump criticized U.S. oil companies for earning large profits from the energy market disruption tied to his administration's actions in Iran. Before the initial U.S.-Israeli strikes in late February, Brent crude was priced around $70 per barrel. Prices hit $126 by April's end and have since settled at roughly $85. The president accused these firms of gaining unfairly from the shortage caused by the conflict.
Trump sharply criticized ExxonMobil and Chevron for their massive profits, urging them to return some earnings to the public. He argued their gains stemmed from scarcity and instability in the energy sector. 'I don’t like it.'
BP also doubled its profits to $5.7 billion in the last quarter. ExxonMobil made $14.5 billion in the second quarter. That is double the amount it earned in the same period last year. It is also its highest quarterly profit since the 2022 Russian invasion of Ukraine. These profits reflect the surge in global oil prices. They also reflect the lack of production stabilization efforts.
Trump urged the companies to reduce retail fuel prices. He also asked them to return part of their profits to consumers. BP's CEO, Meg O’Neill, acknowledged the financial pressure on families due to rising energy costs. She stressed fuel prices depend on the global commodity market. She added that no individual company controls it. 'The product we sell hangs off that global commodity price,' she said in an interview with CNBC. O’Neill clarified BP does not set retail pricing.
Environmental groups and climate advocates condemned major oil firms' profits. They called them 'obscene' and nearly 'criminal.' Clémence Dubois, a campaigns director at 350.org, described the earnings as results of a flawed system. She said the system shifts energy costs onto ordinary people. She highlighted increased wildfire risks. She also pointed out the unfairness of these profits. 'Chevron and Exxon are profiteering from a model of distraction leaving ordinary people to pay the price,' Dubois said.
Trump has been pushing for lower energy prices. This is especially important as he approaches the November mid-term elections. He has declining approval ratings. The president argued that the administration’s June peace talks with Iran should have lowered prices. He said they should have brought the price to $2.25 per gallon. He noted the expected relief has not reached the pump.
On Truth Social, Trump warned retailers to lower prices immediately. 'Gasoline Retailers must get their Prices down, IMMEDIATELY. If Retailers don’t do this, big problems lie ahead!' he wrote in late June. Though the administration denies plans for an oil or petroleum export ban, analysts suggest this might be revisited if prices climb further. Pressure grows for the government to address high energy costs and ensure fair market practices.
Trump reiterated his stance on Monday, stating that oil companies 'better cut the retail price, the consumer price.' He also repeated his belief that the drop in oil prices after recent peace talks should have led to lower gas prices but noted this hasn't occurred. The administration faces continued scrutiny as it navigates political challenges and public demands for energy cost relief.