Trump Orders DOJ to Probe Oil Companies Over Gas Prices

President Donald Trump instructed the Department of Justice to investigate oil companies for not lowering gasoline prices proportionally with falling crude costs. He accused them of 'gouging' customers as pump prices remain high ahead of midterm elections.

The average price of petrol in the US was $3.906 per gallon early on Wednesday, down more than 14% from the peak in May. However, Trump said the fall in petrol prices was neither enough nor proportionate with declines in crude oil costs.

Diplomacy between the U.S. and Iran has translated into relief at the pump for Americans, data showed earlier this week, with petrol prices falling for a sixth straight week. The average price of gasoline in the US was $3.906 per gallon early Wednesday, GasBuddy data showed.

By comparison, over the same period, crude oil prices have fallen 23%, with the U.S. and Iran reaching an interim peace deal and reopening the Strait of Hormuz, through which one-fifth of global oil supply moved before the war began. From their peak in March, US crude prices have sunk about 40%.

Pump prices remain significantly higher than the $2.764 per gallon recorded in January, more than a month before the Iran conflict began.

Oil extended declines on Friday as investors monitored developments in the Middle East conflict while assessing whether recent diplomatic efforts would reduce the risk of supply chain disruptions. International benchmark Brent crude futures for August slipped 1.89% to $73.84 per barrel, and U.S. West Texas Intermediate futures for August declined 1.92% to $70.54 per barrel.

A U.S. official told MS NOW that Iran was behind an attack on a cargo ship near the coast of Oman in the Strait of Hormuz. The ship was sailing under a Singapore flag, according to the Wall Street Journal. The United Kingdom Maritime Trade Operations reported no casualties and no environmental damage from the incident.

Tensions in the Middle East remained elevated, with Iran and the U.S. disagreeing over the use of funds covered under a memorandum of understanding between the two countries. The speaker of Iran's parliament rejected claims by the Trump administration that unfrozen Iranian assets would be used to buy U.S. agricultural products.

U.S. officials maintained that any released funds would remain subject to American approval, stating that if Iranian assets are released, they will be used to purchase American agricultural products to feed the Iranian people. Meanwhile, OPEC faces the possibility of another exit by its second-largest producer after the United Arab Emirates left the cartel in May.