Trump Orders DOJ Probe Into Oil Companies Over Gas Gouging
President Donald Trump has accused major oil companies of price gouging at the pump and ordered the Department of Justice to launch an investigation, as American drivers continue to face elevated fuel costs despite a sharp decline in crude oil prices. In a late-night post on Truth Social, Trump alleged that oil companies are profiteering at the expense of consumers by failing to pass on savings from falling crude prices.
“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil,” Trump wrote, as reported by Fox Business. “Those prices are dropping like a rock! In other words, customers are being ‘gouged.’ I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!”
Context: The Iran War and Energy Crisis
The accusation comes against the backdrop of the ongoing U.S.-Iran war and its aftermath. The U.S. and Israel launched strikes against Iran on February 28, 2026, prompting Tehran to close the Strait of Hormuz — a narrow waterway through which approximately 20% of the global oil supply normally transits, according to Wikipedia. The closure sent global oil prices soaring and triggered a major energy supply crisis.
Crude oil prices have fallen sharply following a 60-day ceasefire agreement signed on June 17, which included the reopening of the Strait of Hormuz. WTI crude futures were trading around $71–$73 per barrel as of June 24, down from peaks of over $100 after the war began, NBC News reported. However, gasoline prices at the pump have not declined at the same rate.
The AAA national average for regular gas stood at $3.928 per gallon on June 24, down from $4.515 a month ago but still significantly higher than $3.224 a year ago, according to data cited by Fox Business.
Industry and Expert Reactions
The American Petroleum Institute (API) pushed back against Trump’s accusations. API spokesperson Bethany Williams told Newsweek that “gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption that is still affecting supply, refining and inventories.” She added that the industry “shares the goal of delivering relief at the pump and restoring stability to global energy markets.”
A DOJ spokesperson responded by stating: “The price of fuel is not only a national security issue, it impacts the wallet of every American. We will always commit to ensuring affordability in this nation.”
Economic experts largely agree that the lag between falling crude prices and declining retail gasoline prices is normal. Patrick De Haan, head of petroleum analysis at GasBuddy, told Newsweek that “retail gas price behaviors haven’t changed—prices continue to fall at the national level, the lag time remains consistent.” He argued that “‘big oil’ isn’t gouging, it’s just that retailers drop prices slower to make up for their inability to earn a livable income during March and April when prices were white hot.”
Tyler Schipper, an associate professor of economics at the University of St. Thomas, similarly noted: “There is always a delayed response at the pump: Gas prices follow oil prices, but they do not move in lockstep with today’s headlines.”
Political and Economic Implications
Trump’s move comes at a politically sensitive time. With midterm elections looming in November 2026, high gas prices represent a significant political vulnerability for the administration. Americans have paid an estimated $59 billion in extra fuel costs since the war began, amounting to nearly $450 per month per household, according to Moody’s Analytics cited by The Guardian.
U.S. inflation hit a three-year peak of 4.2% in May, largely driven by elevated energy prices. By blaming oil companies rather than his own policies or the war he initiated, Trump appears to be attempting to redirect public anger ahead of the elections.
What’s Next
The Strait of Hormuz remains partially disrupted. While the interim peace deal has allowed some traffic to resume, the central route remains laden with mines, and total crossings remain well below pre-war levels. Experts warn that gas prices may not return to pre-war levels until 2027, and any re-escalation of the conflict could send prices soaring again.
It remains unclear what legal authority the federal government has to pursue price gouging claims against oil companies, as there is no federal price gouging law for gasoline. Such laws typically exist at the state level during declared emergencies. The DOJ investigation could face significant legal hurdles, and oil companies may adjust their pricing strategies in response to the heightened scrutiny.