President Donald Trump stated that ExxonMobil and Chevron made 'too much money' from the surge in crude oil prices resulting from the ongoing Iran conflict, expressing his disapproval of the situation during remarks at the White House [1]. Trump specifically noted, 'They're making too much money based on a shortage,' and added, 'I don't like it' [1].
Both Exxon and Chevron reported significant windfall profits for the second quarter. Chevron's earnings soared nearly 400% to $12 billion, compared to $2.5 billion in the same period last year, while Exxon's profits more than doubled to $14.5 billion from $7.1 billion a year ago [1]. Trump emphasized, 'Chevron, too much money. ExxonMobil, too much money,' and called for the companies to 'give some of that back to the public' and to 'cut the retail price, the consumer price' [1].
The sharp increase in profits is attributed to a nearly 20% rise in U.S. crude oil prices since the U.S. and Israel attacked Iran on February 28, which led to Tehran retaliating by attempting to choke oil exports through the Strait of Hormuz. This has triggered what is described as the largest supply disruption in history [1]. U.S. crude had an average closing price of around $92 from April through June, about 27% higher than in the first quarter [1].
No analyst opinions or forward-looking statements were provided in the article [1].
CONCLUSION
ExxonMobil and Chevron posted record profits in the wake of the Iran conflict, driven by a historic supply disruption and sharply higher oil prices. President Trump criticized the oil giants for their windfall earnings and called for lower consumer prices. The market impact is high due to the significant price and supply volatility.