Trump Orders DOJ Probe into Oil Price-Gouging Amid Iran Conflict

President Donald Trump has ordered the United States Department of Justice to investigate major oil companies for alleged price-gouging. The order follows a spike in retail gasoline prices driven by the closure of the Strait of Hormuz and a broader war initiated by the U.S. and Israel against Iran on February 28.

Trump declared the deal with Iran over during a NATO summit in Ankara, Türkiye, following Iranian attacks on commercial shipping, including a Qatari LNG tanker. In response, the United States launched military strikes, reinstated oil sanctions, and revoked a key sanctions waiver. Iran retaliated by targeting U.S. military sites in Bahrain and Kuwait.

Despite national average fuel prices dropping from a May peak of $4.50 to $3.755 by July 4, Trump demanded prices fall further to between $2.25 and $2.50 per gallon. He accused the industry of failing to lower pump prices commensurate with dropping crude costs. This criticism coincides with expectations that oil supermajors ExxonMobil and Chevron will report their highest second-quarter earnings since 2022, with ExxonMobil projecting approximately $15.9 billion in adjusted net income.

Industry representatives, including the American Petroleum Institute and the American Fuel & Petrochemical Manufacturers, have defended their pricing. They argue that gasoline prices do not move in lockstep with crude costs due to refining lags and low global inventories, maintaining that refineries do not unilaterally set finished gasoline prices.