US Markets Poised for Gains as Oil Prices Slide Amid Trump's Criticism
US markets are poised to open higher on Tuesday, driven by futures gains in major indices. The Dow Jones Industrial Average is expected to rise 1.2%, while S&P 500 futures are up 0.3% and Nasdaq futures have jumped 1.1%. Oil prices, however, have taken a hit after President Donald Trump criticized oil companies for profiteering during the Iran conflict.
Trump's comments on Monday stated that 'They made too much money, too much money' and called for big oil companies to give some of their profits back to the public. The US President also urged them to cut retail prices. As a result, shares of ExxonMobil, ConocoPhillips, and Chevron fell around 1% before the bell.
Oil prices have indeed slid close to 3% early Tuesday, with benchmark U.S. crude dropping $2.46 to $77.88 a barrel, while Brent crude slipped by $1.87 to $81.90 a barrel. Treasury Secretary Scott Bessent's comments on CNBC that the US is in talks with Iran and may have a deal today or tomorrow to open the Strait of Hormuz also contributed to oil price losses.
Foreign oil companies are reporting massive increases in profits, with Saudi Aramco posting a 44% year-on-year increase in second-quarter net profit to $32.69 billion. BP's profits more than doubled to $3.9 billion in the same period.