Trump's Heated Battle with Big Oil: What's Fueling the Tension?

President Donald Trump is demanding that oil companies lower gasoline prices after reporting strong profits during the Iran war, arguing that energy giants have benefited from conditions that continue to strain American consumers. Industry experts, however, paint a different picture.

In a pair of Truth Social posts on Monday, Trump responded to comments Chevron CEO Mike Wirth made during an interview on Fox News' Sunday Morning Futures with Maria Bartiromo a day earlier, accusing the executive of failing to credit his administration for the industry's recent success.

"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.

Trump also called on oil companies to lower prices for consumers, writing: "Get your consumer (retail!) Oil Prices DOWN, NOW!"

Separately, speaking to reporters on Monday, Trump criticized ExxonMobil and Chevron for profiting from higher fuel prices during the conflict.

"I don't like it," Trump said. "Chevron, too much money. ExxonMobil, too much. Too much money."

He added: "They ought to give some of that back to the public. And they better CUT the retail price. I'm NOT happy about it."

The comments come less than three months before the November midterm elections, as Republicans defend their congressional majorities and continue facing voter concerns over affordability, inflation and fuel costs.

Newsweek reached out to Chevron and ExxonMobil for comment on Monday.

Why Trump Is Targeting Oil Companies

Trump argued that the oil industry has benefited from policies implemented by his administration. He specifically pointed to Chevron's operations in Venezuela, saying the company is now positioned to profit from opportunities that previously were unavailable.

Trump has long positioned himself as a supporter of domestic energy production and critic of regulations he says hurt the oil and gas industry. Rising fuel prices, however, have triggered new tensions.

Major U.S. energy companies have benefited from higher crude prices and stronger refining margins since the Iran conflict disrupted global fuel markets.

Last week's earnings reports highlighted that trend, with Chevron posting its highest quarterly earnings in at least six years and Valero Energy reporting its strongest quarterly profit since the 2022 energy crisis triggered by Russia's invasion of Ukraine.

Those results came as many consumers continued to express frustration with fuel costs. While energy companies have benefited from elevated prices, many consumers remain frustrated by the cost of filling their tanks.

Gas Prices Remain Elevated

Gasoline prices have become one of the most closely watched economic indicators of the election cycle.

Recent Newsweek reporting found the national average gas price remains above $4 per gallon, while drivers in some states, including California, are paying well over $5 per gallon. Rising prices have followed months of disruptions tied to the Iran conflict and lingering concerns about global energy supplies.

But experts say oil companies have less control over pump prices than many consumers assume.

"Less than most people think," Patrick De Haan, head of petroleum analysis at GasBuddy, told Newsweek on Monday when asked how much influence major oil companies have over what drivers ultimately pay.

"Crude oil is the biggest input, and it's priced on a global market no U.S. company controls, so OPEC moves and disruptions like Hormuz and Ukraine's attacks on Russian refiners flow straight to the pump," De Haan said.

He added that refiners can influence prices when supplies tighten, but many facilities are already operating near capacity. Gas stations, meanwhile, typically run on very thin fuel margins.

"Retailers set the sign but run on razor-thin fuel margins, often making more on coffee than gasoline," he said. "Crude and taxes drive most of it; the corner station has the least room of anyone."

The comments suggest Trump's call for oil companies to slash prices may be easier said than done, particularly when crude prices are shaped by global events beyond the control of any single U.S. company.

Although crude prices have eased from recent highs, consumers do not always see immediate relief at the pump.

De Haan said price changes are often passed through faster than many people expect, but not instantly.

"Not overnight, but faster than skeptics claim," he said. "Usually whatever change in oil happens today starts impacting the direction tomorrow, and in 3-5 days is often passed along."

Critics of the oil industry often point to rising profits as evidence that companies are responsible for higher fuel prices. De Haan said the relationship is more complicated.

"Too simplistic," he said.

"Think chips and memory: when there's a shortage, makers like Micron or Nvidia see profits and stock prices jump because their product got scarce and expensive. That's supply and demand, not gouging.

"Oil is the same. When crude gets expensive, producers profit because the commodity is worth more, not because anyone marked up your gallon. Refiners and retailers are price-takers. Follow the commodity, not the profit number."

Bob McNally, president of Rapidan Energy Group, made a similar argument. "The oil business is cyclical, and so are profits of its companies," McNally told Newsweek. "Oil profits have been high because crude and refined products have been high. Prices have been high due to the Iran war and Hormuz disruption. This has nothing to do with the actions of oil companies."

The American Petroleum Institute (API), which represents the U.S. oil and natural gas industry, pushed back on the notion that any single company is responsible for current gasoline prices.

"Our industry shares the goal of delivering affordable, reliable energy for consumers," an API spokesperson told Newsweek. "Today's higher prices are driven by global supply, demand and continued uncertainty around the Strait of Hormuz and other critical shipping lanes, not by any one company."

The spokesperson added that the administration's energy policies have helped support record U.S. production and refining activity while cushioning some of the impact of global disruptions on consumers.

Those arguments echo broader industry claims that crude prices, refining costs, transportation expenses and taxes all play major roles in determining what consumers ultimately pay.

Affordability Worries Persist

Trump's comments come as polling continues to show widespread concern about the cost of living.

A July Washington Post-ABC News-Ipsos survey found that 65 percent of U.S. adults disapproved of Trump's handling of the economy, while 66 percent described groceries as unaffordable and 59 percent said they did not believe they had a good chance of improving their standard of living.

The same survey found that only 17 percent of Americans felt financially better off than when Trump took office, while 43 percent said they were worse off.

Among Republicans, the share of respondents who said they were worse off financially increased compared with earlier polling.

Other surveys have painted a similarly bleak picture.

A Harris Poll found that 95 percent of Americans believe the country is experiencing an affordability crisis. The survey also found that gas and grocery prices remain among the public's top concerns.

Meanwhile, a Quinnipiac University poll found that only 19 percent of voters believed the economy was improving, while most said conditions were either stagnant or deteriorating.

De Haan said gasoline prices remain a significant political challenge.

"I'd say so, which is why it's something so often the President has talked about," he said when asked whether fuel costs could remain a problem for Republicans heading into the midterms. "It's a big liability."

Affordability and the Midterms

The economy is emerging as one of the defining issues of the 2026 midterm campaign.

A July Pew Research Center survey found that voters overwhelmingly want congressional candidates to focus on economic issues, especially prices and affordability. Americans were nearly evenly divided on which party they trusted more on economic policy.

At the same time, multiple polls have shown that concerns about inflation and household budgets continue to outweigh many other issues.

Political strategists have warned that sustained frustration over gas prices could hurt the party controlling the White House, particularly in key Senate battleground states where fuel costs remain above psychologically important thresholds.

Contact Newsweek editors on this story: Edward T. Cummins.