Trump Criticizes Oil Giants Over War-Driven Profits
US President Donald Trump has criticized Exxon Mobil and Chevron for reporting massive profits amid the oil price surge caused by the war with Iran, demanding they lower prices for consumers.
While attempting to bring about an end to the war with Iran through a final diplomatic move, US President Donald Trump is also directing fire toward American energy giants.
On Monday, Trump attacked Exxon Mobil and Chevron following the massive profits they reported for the second quarter, claiming that they are benefiting from the surge in oil prices caused by the conflict in the Middle East at the expense of the American public.
"They are making too much money because of the shortage that was created. I don't like it," Trump told reporters at the White House. "Chevron, too much money. Exxon Mobil, too much money. They will have to return some of it to the public, and they had better lower prices for the consumer."
This sharp criticism comes just days after both companies reported a significant jump in profits. Chevron recorded a net profit of $12 billion in the second quarter, almost five times the profit in the same period last year, while Exxon Mobil reported a profit of $14.5 billion, more than double the profit from last year.
These profits come against the backdrop of the surge in energy prices since the outbreak of the war between the United States, Israel, and Iran at the end of February. Oil prices in the US have risen by about 20% during this period, while the average price of gasoline has jumped from about $2.98 per gallon on the eve of the war to about $4.10 today. For the White House, this is a significant political problem, as fuel prices are a key indicator that the American public feels almost immediately.
US oil companies are also recording a victory in export volumes, with the Department of Energy reporting an all-time high of 5.73 million barrels per day in May.
Saudi Arabia is also profiting
Saudi oil giant Aramco reported an adjusted net profit of 125.2 billion Saudi riyals ($33.4 billion) for the period between April and June, an increase of 33% compared to the same period last year and above analysts' forecasts of $31.59 billion. Following these exceptional profits, the Aramco board of directors announced that a dividend of $21.9 billion would be distributed to investors.
The jump in profits is attributed to Aramco's rapid response to disruptions in the Strait of Hormuz. The company utilized its 1,200-kilometer East-West oil pipeline to bypass the strait, maintaining exports of 7 million barrels per day.
Trying to return to negotiations
Parallel to the pressure on oil companies, Trump is trying to promote a diplomatic channel with Tehran, calling the renewed negotiations Iran's "last chance" to reach an agreement. However, Tehran continues to categorically deny that any direct talks are taking place with Washington, stating that contacts are focused only on the Strait of Hormuz.
In the background, the struggle for the Strait of Hormuz continues. The US Central Command announced that it has diverted 44 merchant ships, seized two, and disabled two others. For Trump, the struggle is being waged on two fronts: attempting to end the war through an agreement and preventing high energy prices that could harm the US economy.
