Chevron Falls 1.4% as Trump Attacks Oil Windfall Profits on August 5

President Trump on Monday attacked Chevron and ExxonMobil for earning what he called excessive profits from the Iran war. Chevron reported $12.1 billion in second-quarter profit, nearly 400% higher than the prior year. Trump demanded the companies cut retail fuel prices, saying they are “making too much money.” The criticism comes as gasoline prices have climbed 40% since the U.S. and Israel attacked Iran on February 28, now averaging $4.10 per gallon nationwide.

How the Iran conflict drove oil profits skyward

The U.S. and Israel attacked Iran on February 28, triggering the largest oil supply disruption in history. Iran retaliated by attempting to choke exports through the Strait of Hormuz. U.S. crude oil prices rose about 20% since the conflict began, averaging $92 per barrel in the second quarter, roughly 27% higher than the first quarter. This scarcity sent profits soaring for global oil majors.

Record earnings across the industry

Chevron reported $12.1 billion in Q2 profit, more than four times its $2.5 billion result in the same period last year. ExxonMobil posted $14.5 billion, more than double its $7.1 billion from the prior year. Shell reported nearly $10 billion, its second-highest quarterly profit ever. Saudi Aramco, the world’s largest oil producer, posted a 33% profit surge to $33.4 billion.

Trump’s political pressure and market reaction

Trump told reporters Monday he is “not happy” with the profits and demanded the companies “give some of that back to the public.” He called the situation “a problem” three months ahead of midterm elections where current polling shows Democrats could gain ground in Congress. Chevron shares fell 1.4% to $190.40 on Tuesday. ExxonMobil declined 0.7% to $153.96. Both stocks remain under pressure as crude oil prices fell about 5% on hopes that U.S.-Iran talks might prevent further escalation.

What this means for investors

Meyka grades both Chevron (B+) and ExxonMobil (B+) as neutral buys. Chevron trades at a 29.1 price-to-earnings ratio with analyst consensus at 3.0 (buy). ExxonMobil trades at 24.1 PE with the same consensus. While windfall profits boosted earnings, political pressure and potential fuel price cuts pose downside risk to future quarters. The stocks’ technical indicators show mixed signals: Chevron RSI at 55.76 suggests neutral momentum, while ExxonMobil RSI at 59.26 indicates slight strength.

Final Thoughts

Trump’s public criticism of oil majors’ windfall profits reflects political pressure ahead of midterm elections, but neither company has committed to price cuts. Investors should monitor whether regulatory action or voluntary price reductions emerge as the Iran conflict evolves.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.