President Donald Trump has escalated his confrontation with major oil companies, directing the Department of Justice to investigate whether Exxon Mobil, Chevron, and other firms are illegally keeping gasoline prices high despite a sharp drop in crude oil costs. The move, announced via Truth Social and a subsequent video posted by the administration, comes as average U.S. pump prices remain nearly a dollar above pre-war levels, even as peace with Iran and the reopening of the Strait of Hormuz have sent crude prices tumbling.
U.S. crude oil prices have fallen 36% from their May peak, but gasoline prices have only declined about 14% over the same period. According to AAA, the national average stood at $3.93 per gallon on Wednesday, down from $4.02 a week earlier but well above the $2.76 recorded in January before the Iran conflict. Trump accused oil companies of “gouging” consumers and warned, “Gasoline prices better start going down a lot faster than what I’m seeing.”
The probe specifically names Exxon Mobil and Chevron, whose shares fell 2.03% and 2.57% respectively following the announcement. The American Petroleum Institute pushed back, arguing that pump prices do not move in lockstep with crude, especially during a global supply disruption. The investigation adds political and regulatory risk for the sector as the midterm elections approach, with gas prices a potent voter concern.
The decline in crude prices has been driven by a surge in tanker traffic through the Strait of Hormuz. Crossings jumped from 32 in mid-June to 93 a week later, according to maritime intelligence firm Kpler, after Iran declared the waterway open to all shipping as part of an interim peace deal. The agreement also grants Iran a sanction waiver to sell its oil globally. Brent crude dropped 1.8% to $75.65 per barrel, while West Texas Intermediate fell 1.2% to $72.31. Analysts at Macquarie lowered their 2026 WTI forecast from $89 to $77 a barrel, citing faster-than-expected market normalization.
