Chevron Falls 3.2% as Trump Demands Oil Price Cuts After Q2 Windfall

By Danny Kontos

August 4, 2026

08:51 PM

4 min read

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Key Points

Chevron fell 3.2% to $190.45 after Trump demanded fuel price cuts on August 3.

Chevron Q2 profit soared 400% to $12.2 billion, ExxonMobil's nearly doubled to $14.5 billion.

Oil prices jumped 20% since February 28 Iran war, with Brent crude peaking at $126 per barrel.

Both stocks rated B+ by Meyka with four analysts backing Chevron and three backing ExxonMobil.

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President Trump attacked Chevron and ExxonMobil on August 3 for making excessive profits from elevated oil prices tied to the Iran conflict. Chevron’s second-quarter earnings soared 400% to $12.2 billion, while ExxonMobil’s nearly doubled to $14.5 billion. Trump demanded both companies cut retail fuel prices immediately, marking a rare break from his usual alliance with Big Oil. Gasoline prices averaged $4.10 per gallon nationwide, up 40% since the war began on February 28.

Why Trump turned on oil companies

Trump has historically backed the oil industry but shifted course after facing political pressure over high fuel costs ahead of November’s midterm elections. Crude prices jumped 20% since the U.S.-Israel strikes on Iran on February 28, with Brent crude trading around $85 per barrel on August 4, down from a peak of $126 in late April. Trump told reporters the companies are “making too much money based on a shortage” and must “give some of that back to the public.”

Record profits from Middle East disruption

Chevron reported its highest ever quarterly profit of $12.2 billion, a fivefold increase from $2.5 billion in the same quarter last year. ExxonMobil earned $14.5 billion, double its year-ago profit and the highest since Russia’s 2022 invasion of Ukraine. The two companies combined for over $26 billion in profits for the three months ending June 30. BP also reported profits doubled to $5.7 billion in the same period.

Stock reaction and market pressure

Chevron shares fell 3.2% to $190.45 on August 4, while ExxonMobil declined 1.8% to $152.60. Oil futures dropped 5% on August 3 as traders bet U.S.-Iran negotiations might ease supply concerns. Meyka grades both stocks B+, with Chevron’s RSI at 60.34 and XOM’s at 62.26, both signaling neutral momentum. Four analysts rate Chevron a buy versus one hold; three rate ExxonMobil a buy versus one hold.

Pressure on fuel prices and policy risk

U.S. oil futures averaged $92 per barrel from April through June, about 27% higher than the first quarter. Gasoline prices hit $4.10 per gallon on average nationwide, nearly 40% above the $2.98 per gallon on February 27 before the war. Trump previously ordered the Justice Department to investigate potential price gouging in June. Climate groups have also condemned the windfall earnings as “obscene profiteering.”

Final Thoughts

Chevron and ExxonMobil face political heat over record profits despite Trump’s usual industry support. With both stocks graded B+ and trading near 52-week highs, the risk of regulatory action or price pressure could weigh on valuations if tensions with Iran ease.

FAQs

Why did Trump attack oil companies after supporting them?

Trump faces midterm election pressure over high fuel costs and voter anger about the Iran war he launched. He is using public criticism to push companies to cut prices without formal government action.

How much did Chevron and Exxon earn in Q2 2026?

Chevron reported $12.2 billion in Q2 profit, up 400% year-over-year. ExxonMobil earned $14.5 billion, double its Q2 2025 profit.

What caused oil prices to spike since February?

The U.S.-Israel war on Iran starting February 28 disrupted global oil supplies. Crude rose 20% and Brent peaked at $126 per barrel as Iran threatened to choke exports through the Strait of Hormuz.

How much higher are gasoline prices now than before the war?

U.S. gasoline prices averaged $4.10 per gallon on August 4, up 40% from $2.98 per gallon on February 27 before the conflict began.

Disclaimer:
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.

About Author

Danny Kontos

Co Founder

Danny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.