President Donald Trump said on August 3 that ExxonMobil and Chevron had made 'too much money' during the Iran war and called on them to cut retail gasoline prices. The remarks came three days after both companies reported blockbuster second-quarter earnings.
Record profits during wartime
The U.S. and Israel struck Iran on February 28, triggering a war that sent oil prices soaring. Brent crude jumped from around $72 a barrel in late February to nearly $120 at its peak. March alone saw Brent gain 51%, one of the largest monthly surges on record. By late July, Brent had fallen to $82 a barrel after Iran signaled it might halt attacks.
U.S. oil futures averaged roughly $92 a barrel from April through June, 27% above the first quarter. That translated into sharply higher profits for the two largest U.S. oil companies. Chevron's profit more than quadrupled to $12.1 billion in the second quarter, up from $2.5 billion a year earlier. Exxon's profit more than doubled to $14.5 billion.
How the companies used the windfall
Chevron used part of its earnings to cut debt by a record $8.4 billion. Exxon returned $9.4 billion to shareholders through dividends and buybacks. Meanwhile, gasoline prices at the pump have climbed. The national average this week was $4.09 a gallon, up from $2.98 before the war.
Market reaction and political context
Shares of Chevron dipped nearly 2% and Exxon moved slightly lower after Trump's remarks. The president has otherwise positioned himself as an ally of the fossil fuel industry. But he separately criticized Chevron CEO Mike Wirth for not crediting his administration's energy policies during a TV interview.
It remains unclear whether either company will respond to Trump's call for lower prices. Neither Exxon nor Chevron has publicly commented on the president's statement.
