Trump demands Exxon, Chevron cut prices after $26.5B profits

President Donald Trump demanded ExxonMobil and Chevron cut retail fuel prices Monday after the two oil majors earned a combined $26.5 billion in the second quarter, more than triple their year-ago haul.

"They're making too much money based on a shortage. I don't like it," Trump told reporters in the Oval Office. "Chevron, too much money. ExxonMobil, too much money. They're going to give some of that back to the public."

ExxonMobil reported second-quarter earnings of $14.5 billion, or $3.48 per share, more than double the $7.1 billion it earned a year earlier. Adjusted earnings reached $14.7 billion, while operating cash flow totaled $23.6 billion. Chevron posted $12.1 billion, nearly five times the roughly $2.5 billion it earned in the same period of 2025. WTI crude peaked at $109.64 per barrel during the quarter, up from $65.17 before the Iran conflict intensified.

The confrontation carries political risk for Trump ahead of November's midterm elections, with US gasoline prices up more than 30 percent since the Iran war began. The administration has no direct authority to set retail fuel prices, but Trump's late-June order directing the Justice Department to investigate oil companies points to potential regulatory escalation.

Profit surge draws White House scrutiny

ExxonMobil returned $9.4 billion to shareholders through $4.3 billion in dividends and $5.1 billion in share buybacks, according to its quarterly results. Chevron reported record US production and a 20 percent increase in worldwide output, with higher crude prices and wider refining margins offsetting rising costs.

Trump also singled out Chevron Chief Executive Mike Wirth, who discussed the company's performance on Fox Business without crediting the administration's energy policies. "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 on Truth Social. He also referenced Chevron's Venezuela operations, saying the company was "back, far bigger and stronger than ever before, expecting to make a fortune."

The American Petroleum Institute pushed back, with spokesperson Andrea Woods saying fuel prices reflect "global supply, demand and continued uncertainty around the Strait of Hormuz and other critical shipping lanes—not by any one company." Retail gasoline prices are generally set by independent station owners rather than oil producers, a structural constraint that limits what the administration can achieve through public pressure alone.

Oil retreats as Trump pauses Iran strikes

Oil prices dropped Monday after Trump called off another planned strike against Iran and said negotiations could reopen the Strait of Hormuz. WTI crude fell more than 5 percent to around $80 per barrel, while Brent slid about 7 percent to $83.79 before recovering to $84.39. US gasoline futures declined nearly 5 percent.

The retreat reflected expectations that a diplomatic agreement could restore shipping activity through the Strait of Hormuz, a critical route for global oil and LNG shipments. Trump described the talks as Iran's "last chance," though Tehran disputed his account, saying it was holding discussions with Oman over a temporary safe route rather than negotiating directly with Washington.

Chevron shares fell 2.3 percent in afternoon trading Monday, while ExxonMobil traded 0.8 percent lower. Both stocks remain up roughly 28 to 29 percent year to date, reflecting the broader energy rally driven by the conflict.

The last time Washington publicly pressured oil majors over pricing was in 2022, when President Joe Biden threatened windfall profit taxes as gasoline topped $5 a gallon. That episode ended without formal action, but the current confrontation unfolds with the Strait of Hormuz still disrupted and the midterm elections approaching.

Executives from both companies cautioned during earnings calls Friday that limited refining capacity could keep gasoline prices elevated through the autumn, even if crude prices ease. Trump said prices would "drop through the floor" if the war ended, but the administration lacks the legal authority to set retail prices charged by independent fuel stations. The standoff leaves the White House with limited near-term levers beyond public pressure, while the trajectory of crude prices — and by extension pump prices — hinges on whether the Strait of Hormuz talks produce a durable reopening.

This article is for informational purposes only and does not constitute investment advice.