Topline
President Donald Trump complained about elevated gas prices in the U.S. and accused oil companies of gouging customers in an overnight Truth Social post, signaling apparent frustration over elevated costs triggered by the Iran war despite dismissing affordability as a “fake word” last week.
President Donald Trump threatened a DOJ probe against oil companies, accusing them of gouging consumers at the pump.
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Key Facts
In a post made shortly after midnight, the president complained that U.S. oil companies were “not dropping their price” at the gas pump in line with the sharp slump in global crude oil prices since the U.S. and Iran signed an interim peace deal last week.
Trump pointed out that global crude oil prices were “dropping like a rock,” and said high prices at the pump meant that customers were being “gouged.”
Trump then added that he has instructed the DOJ to “immediately start looking into this,” although it’s unclear if any formal probe has been opened and if any specific U.S. oil companies are being targeted.
The president signed off his post with a warning, saying, “Gasoline prices better start going down a lot faster than what I’m seeing.”
What Do We Know About Current Gasoline Prices?
According to AAA’s tracker, national average gas prices on Wednesday were at $3.93 per gallon, slightly above Tuesday’s average but down from $4.02 last week. Last Thursday, gas prices fell below $4 per gallon for the first time since the end of March. Prices at the pump crossed $4.50 per gallon last month, sharply driving up inflation. Although the recent drop will likely bring some relief, prices still remain almost a dollar above pre-war numbers. As Iran’s blockade of the Strait of Hormuz caused oil prices to soar in the past few months, President Donald Trump repeatedly insisted that they would drop sharply once the war was over.
What About Global Crude Prices?
Crude prices continued to decline on Wednesday, with the global benchmark Brent Crude Futures falling more than 1.8% to $75.65 per barrel. In the past two weeks, the price has fallen by almost $20 per gallon as a peace deal appeared near. Last week, after the interim peace deal was signed, Iran announced the Strait of Hormuz was open to all shipping for toll-free passage. In addition to this, the peace deal also grants Iran a sanction waiver to sell its oil on the global market.