Trump Calls Out Exxon, Chevron for Profiting From a War He Started

President Donald Trump said Monday, August 3, that ExxonMobil (XOM) and Chevron (CVX) made “too much money” during the Iran war. He called on both companies to cut retail gasoline prices.

Both oil majors released blowout second-quarter earnings three days before Trump’s remarks. Trump has otherwise positioned himself as an ally of the fossil fuel industry.

What Trump Said

Speaking to reporters at the White House, Trump singled out both companies by name for capitalizing on tight supply.

“They’re making too much money based on a shortage. I don’t like it.”

Trump, CNBC

Trump added that the companies should return some of that money to consumers. He said prices would “drop through the floor” once the war ends.

He has separately criticized Chevron chief executive Mike Wirth for not crediting his administration’s energy policies during a television interview.

Oil’s Wild Ride Since February

Crude prices have swung sharply since the U.S. and Israel struck Iran on February 28. Brent crude jumped from around $72 a barrel that week to nearly $120 at its peak. Iran had moved to choke off exports through the Strait of Hormuz timeline, a key global chokepoint. March alone saw Brent gain 51%, one of the largest monthly surges on record.

Prices have since cooled but remain volatile. Brent fell to $82 a barrel in late July after Iran signaled it might halt attacks. Crude slipped again on Monday, down about 5%, on hopes that renewed U.S.-Iran talks could ease the conflict.

U.S. oil futures still averaged roughly $92 a barrel from April through June, 27% above the first quarter. Gasoline has followed a similar path. It averaged $4.09 a gallon nationwide this week, up from $2.98 before the war, per AAA data. That squeeze has complicated the inflation picture the Federal Reserve has been tracking all year.

Where the Profits Came From

Chevron and Exxon reported their strongest quarters in years on Friday. Chevron’s profit more than quadrupled to $12.1 billion, up from $2.5 billion a year earlier. Exxon’s profit more than doubled to $14.5 billion, up from $7.1 billion.

Higher crude prices explain part of the jump, while refining margins drove much of the rest. Both companies ran their refineries near maximum capacity even as the war knocked out Middle East refining capacity elsewhere. Chevron used part of its windfall to cut debt by a record $8.4 billion. Exxon returned $9.4 billion to shareholders through dividends and buybacks.

Shares of both companies dipped modestly after Trump’s remarks, with Chevron down nearly 2% and Exxon slightly lower.

Trump’s public pressure campaign against the oil majors marks a notable shift, given his usual alignment with the industry. Whether that pressure lowers pump prices may depend on how long the conflict, and its disruption to oil flows, lasts.