Trump Slams Exxon and Chevron Over Iran War Windfalls
US President Donald Trump has targeted oil giants ExxonMobil and Chevron for their 'windfall profits' from the Iran war, calling on them to lower prices or share their earnings with consumers. Speaking in the Oval Office, Trump said that the two companies should 'give some of it back to the public' after posting substantial gains in the second quarter.
According to Newsweek, Exxon's net income more than doubled to $14.5 billion in the three months ending June 30, while Chevron's earnings rose by 380% to $12.1 billion. The boom was driven primarily by elevated global fuel costs and disruptions to oil supplies through the Strait of Hormuz.
Experts believe that there are tools available to steer companies towards Trump's desired outcome, but they appear divided on whether he will choose to use them. Willy C. Shih, a professor at Harvard Business School, argued that market forces dictate supply and demand during times of crisis, and that high prices brought more supply onto the market.
Former Senate investigator Tyler Gellasch suggested that Trump could pressure oil majors into dropping prices by rolling back tax subsidies or leaning on them publicly to change course. However, he noted that this would be an unusual move for a Republican administration.