President Donald Trump said US oil companies are profiting from the Strait of Hormuz disruption while Americans pay more at the pump. Gas and diesel prices have risen since the Iran war began, and the midterm elections are less than two weeks away.
President Donald Trump told a rally in Georgia on Saturday that American oil companies are earning hundreds of billions of dollars. He said, "we're making a freaking fortune".
Trump calls high oil prices temporary
Trump described oil prices as "temporarily high" and said the throttling of the Strait of Hormuz has pushed oil buyers toward American companies operating in Texas, Oklahoma, and Louisiana.
Year over year, a sample of 38 US producers and refiners grew revenues by about $140 billion, the Oil & Gas Journal reported in a Q2 report. The trade publication tied the gains to surging crude prices linked to ongoing Strait of Hormuz disruptions.
Drivers pay more for gas and diesel
Those profits, however, are not exactly shared by the American public. AAA reported that regular gas now averages $4.29 a gallon, compared with $2.98 in February, one day before the US and Israel launched surprise attacks on Iran.
Diesel has climbed as well. On Sunday, AAA put diesel at $6.35, up from $3.75 a day before the conflict began. Shipping companies rely on diesel, and higher diesel costs are often passed on to consumers as higher prices.
Midterms raise the stakes
Business Insider reported that Trump's comments are unlikely to win goodwill among voters facing an affordability crisis. The White House did not immediately respond to a request for comment.
Trump has also moved to lower gas prices. On October 9, he said he reached a deal with Russian President Vladimir Putin to import Russian diesel, which had been heavily sanctioned since the start of Russia's invasion of Ukraine. Analysts warned the move could give the Russian economy a lifeline.
Source: Business Insider
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