Trump orders DOJ investigation into oil companies over gas prices as US-Iran ceasefire eases pump costs
President Donald Trump instructed the Justice Department to investigate whether big oil companies are gouging consumers, accusing them of not passing through sharply lower crude costs fast enough after the ceasefire with Iran.
Trump’s overnight order
In a Truth Social post late Tuesday, President Donald Trump said he had instructed the Department of Justice to open an investigation into major oil companies, claiming they were ‘gouging’ customers at the pump.
The post followed a rally in Pennsylvania where Trump told voters that oil would ‘come charging down’.The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being “gouged.” I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!
Fuel prices since the ceasefire
Global crude prices have tumbled since the 60-day ceasefire between the US and Iran was signed last week. Brent crude, the international benchmark, slipped below $75 a barrel on Wednesday for the first time since the conflict began, while WTI fell to $71. The 31 percent drop in crude since mid-May has begun to show at the pump, but retail fuel remains well above pre-war levels.
- 2026-02-27
- 3 $/gal
- 2026-05-15
- 4.56 $/gal
- 2026-06-24
- 3.92 $/gal
A fragile peace with Iran
The US and Iran concluded a 14-point memorandum of understanding last week, reopening the Strait of Hormuz, through which roughly 20 percent of the world’s oil flows. Traffic through the strait is still far below normal, however, and thornier issues such as Iran’s nuclear programme remain unresolved as the two sides enter 60 days of detailed talks.
- US and Israel launch airstrikes on Iran; Iran blocks Strait of Hormuz.
- Brent crude peaks above $109 per barrel; US gasoline hits $4.56/gal.
- US and Iran sign 60-day ceasefire memorandum, Hormuz reopens partially.
- Trump orders DOJ investigation into oil companies; Brent falls below $75.
Political pressure and inflation
Gasoline prices are a politically sensitive subject ahead of November’s midterm elections. US inflation hit a three-year high of 4.2 percent in May, driven largely by energy costs, while core inflation stood at 2.9 percent. Drivers remember Trump’s earlier promise of $2-per-gallon gasoline and his May 11 assurance that prices would ‘drop like a rock’ once the war ended. The national average is now $3.92 a gallon, down from $4.56 in May but still far above the $3.00 level before the war.
Expert outlook
Analysts caution that pump prices will not snap back to pre-war levels overnight. Refineries and production were disrupted during the conflict, and it may take several months for Hormuz traffic to normalise.
Past federal probes of retail fuel pricing have not uncovered systemic anti-competitive behaviour outside isolated cases.Even assuming a true and lasting end to the military conflict, it would still be several months before traffic through the Strait of Hormuz returns to its pre-war level.
