President Donald Trump said U.S. oil and gas companies are making enormous profits from the war with Iran, even as Americans face sharply higher fuel prices ahead of the November midterm elections.
Speaking at a rally in Georgia on Saturday, Trump described oil prices as “temporarily high” and said disruptions around the Strait of Hormuz had pushed oil buyers toward American producers operating in states including Texas, Oklahoma and Louisiana.
“The United States oil and gas business is making hundreds of billions of dollars,” Trump said. “I don’t give a damn, I’m going to say it — we’re making a freaking fortune.”
His comments come as rising gasoline and diesel prices add to concerns about the cost of living for American households and businesses.
Gas Prices Rise as Oil Companies Benefit
According to AAA figures cited in the original report, the national average price of regular gasoline had reached $4.29 per gallon, up from $2.98 the day before the United States and Israel launched attacks on Iran in February.
Diesel prices have also climbed significantly. AAA reported a national average of $6.35 per gallon on Sunday, compared with $3.75 a day before the conflict began.
Higher fuel costs can affect more than drivers. Trucking companies, shipping operators and other businesses depend on diesel to transport goods. When transportation expenses increase, some businesses pass those additional costs on to customers through higher prices.
The conflict and disruptions affecting oil shipments through the Strait of Hormuz have contributed to volatility in global energy markets. The waterway is a major route for international oil and gas shipments, making disruptions there important for energy supplies and prices.
Report Highlights Higher Revenue for US Energy Producers
The financial benefits for some American energy companies were also highlighted in a report from the Oil & Gas Journal, an industry publication.
According to the report cited in the original coverage, a sample of 38 U.S. oil producers and refiners collectively increased their revenue by approximately $140 billion year over year. The publication linked the gains to higher crude oil prices associated with disruptions around the Strait of Hormuz.
Higher revenue does not necessarily translate into the same level of profit for every company, as energy producers and refiners face different operating costs and market conditions. However, rising oil prices can benefit companies that sell petroleum products at higher prices while their costs increase more slowly.
For consumers, the effects can be different. Higher prices at gas stations raise household transportation expenses, while more expensive diesel can increase costs across supply chains.
Trump Acknowledges Potential Political Reaction
Trump’s remarks come less than two weeks before the midterm elections, as fuel prices and affordability remain important issues for American voters.
At the Georgia rally, Trump anticipated criticism over his comments about energy company earnings while consumers pay more to fill their vehicles.
“I can see just the fake headlines — ‘President Trump is talking about all the money they’re making while people are suffering at the pump,’” he said. “That’ll be the headline.”
The White House did not immediately respond to a request for comment sent on Sunday, according to the original report.
Trump Points to Efforts to Lower Fuel Costs
Trump has also discussed measures intended to ease pressure on fuel prices. On October 9, he said he had reached an agreement with Russian President Vladimir Putin to import Russian diesel.
Russian energy exports have faced extensive sanctions since Russia’s full-scale invasion of Ukraine in 2022. The proposed arrangement drew concern from analysts who warned that additional sales could provide economic support to Russia as its war against Ukraine continues.
The impact of any additional fuel supplies on American prices would depend on factors including the volume of imports, market conditions, transportation costs and the broader course of the conflict with Iran.
With gasoline and diesel prices elevated, energy costs remain a significant concern for households and businesses. Trump’s comments have drawn attention to the contrast between the potential financial gains for parts of the U.S. energy industry and the higher prices consumers are paying at the pump.
Source: Business Insider reporting, with fuel-price figures attributed to AAA and industry revenue figures attributed to the Oil & Gas Journal.
