Trump's Big Oil Criticism Sends US Markets Soaring and Oil Prices Tumbling
US markets are expected to open on a positive note, with futures for the Dow Jones Industrial Average rising by 1.2% and S&P 500 futures increasing by 0.3%. The Nasdaq futures have also jumped by 1.1%. Meanwhile, oil prices have dropped close to 3%, following President Donald Trump's criticism of big oil companies.
On Monday, Trump stated that the companies 'made too much money' and should give some back to the public. He specifically mentioned ExxonMobil and Chevron, which reported higher profits due to increased energy prices after the Strait of Hormuz was closed to oil tankers.
The Treasury Secretary Scott Bessent also weighed in on the situation, saying that 'we are in talks with the Iranians' and there's a chance for a deal to open the Strait and normalize the conflict. This comment has contributed to the decline in oil prices, with benchmark US crude falling by $2.46 to $77.88 per barrel.
Other companies in the energy sector have also reported massive increases in profits, including Saudi Aramco's 44% year-on-year rise in second-quarter net profit to $32.69 billion and BP's more than doubled profits to $3.9 billion.