Trump blasts Chevron and ExxonMobil for 'making too much money' as gas prices stay high

Trump's criticism

On Monday, President Donald Trump sharply criticized the two largest U.S. oil producers, Chevron and ExxonMobil, for reaping excessive profits from the global oil shortage caused by the war in Iran. Speaking to reporters in the Oval Office, Trump said the companies were "making too much money" and demanded they lower consumer gasoline prices.

Based on a shortage, they're making too much money. I don't like it, and I should be the last one to say because I'm a big free enterprise guy -- nobody bigger.

Trump also posted on Truth Social, singling out Chevron CEO Mike Wirth for failing to credit the administration's policies in a television interview. He wrote that without his administration, the oil industry "would be DEAD" and ordered companies to "get your consumer (retail!) Oil Prices DOWN, NOW!" The president later told reporters he was in no rush to end the Iran conflict but acknowledged the need to fully reopen the Strait of Hormuz, through which about 20% of global energy supplies flowed before the war.

Record profits

The criticism came after both companies reported blockbuster second-quarter earnings on Friday. Chevron's net income surged nearly 400% to $12 billion, up from $2.5 billion a year earlier, while ExxonMobil's profit doubled to $14.5 billion from $7.1 billion. Valero Energy also posted its strongest quarterly profit since the 2022 energy crisis.

The profit surge was fueled by a roughly 20% jump in U.S. oil prices since the United States and Israel attacked Iran on February 28, prompting Tehran to block the Strait of Hormuz. In the April-June quarter, U.S. crude averaged about $92 per barrel, 27% higher than the first quarter. The disruption is the largest oil supply shock in history, according to Mediafax.

Gas prices and political stakes

The average U.S. retail gasoline price has hovered near $4.10 a gallon for the past week, up from less than $3 before the conflict began. Refining capacity constraints have kept pump prices elevated even as crude prices dipped on Monday following hopes of U.S.-Iran talks. In late June, Trump ordered the Justice Department to investigate big oil companies for not bringing gasoline prices down fast enough as crude weakened.

With the midterm elections three months away, high fuel costs are a growing political liability for Trump's Republican Party, which risks losing its House majority. Republican pollster Frank Luntz warned that voter perceptions are solidifying.

Labor Day is the point where gas prices are baked into the election. That last summer trip determines how voters evaluate their cost of living.

A former Trump adviser, speaking anonymously, said the president's repeated promises of a swift end to the conflict were losing credibility with markets. "His credibility has been a little bit shot," the adviser said. "The markets aren't paying attention to him, they're paying attention to what's happening and, with respect to oil prices, it is a huge liability for the Republicans."

Industry response

Chevron declined to comment on Trump's remarks, and ExxonMobil did not immediately respond. The American Petroleum Institute, which represents major producers, said higher prices were driven by global supply and demand, not individual companies.

Our industry shares the goal of delivering affordable, reliable energy for consumers.

Chevron and ExxonMobil shares fell over 2% and about 1%, respectively, on Monday, as oil prices dropped roughly 5% on hopes that diplomacy could prevent further escalation.

Chevron bonus

Separately, Chevron awarded most employees a special bonus equal to half a month's base pay, according to an internal email seen by Reuters. CEO Mike Wirth praised staff for meeting cost-reduction targets and achieving synergies from the Hess acquisition ahead of schedule.

Results like these in a year like this are not ordinary. They reflect extraordinary effort under extraordinary circumstances.

The bonus announcement came on the same day as Trump's public criticism, though the email did not reference the president's comments.