Oil prices fell sharply again on Wednesday as concerns about supply disruptions eased. International benchmark Brent crude fell about 4% to around $73 a barrel, its lowest level since before the United States and Israel launched air strikes on Iran earlier this year. U.S. West Texas Intermediate (WTI) crude oil also fell about 4% to around $70 a barrel.
As oil prices fall, US President Donald Trump Major oil companies are under increased pressure. Trump said he has directed the Department of Justice (DOJ) to immediately investigate whether oil companies are unfairly keeping gas prices high for consumers, according to a post on Truth Social.
Oil companies under pressure
Trump accused oil companies of not passing on lower crude prices to drivers. He said oil companies are paying much less to buy crude oil, but gas stations are not cutting prices fast enough. The president claims consumers are being “cheated.” Trump further mentioned that customers were being overcharged because gasoline prices did not fall with the sharp drop in oil prices.
Trump warned that gas prices should fall faster. He said he directed the Justice Department to immediately begin investigating the issue and recommended that prices at the pump should already be reduced. The pressure comes as Americans continue to contend with higher fuel costs related to the conflict with Iran. The effective closure of the Strait of Hormuz, one of the world’s most important oil shipping routes, has raised fuel supply concerns and pushed up energy prices.
U.S. natural gas prices fall
Gasoline prices soared early in the conflict. According to “The Hill”, as fuel shortages and supply concerns spread, the average price of gasoline in the United States climbed to more than $4 per gallon at the end of March. Natural gas prices have begun to decline but remain high. Average price of regular gasoline USA Gas prices were just under $4 a gallon Wednesday, compared with about $4.50 a gallon a month ago, according to AAA.
Trump approval rating drops
The Iran conflict has hurt Trump’s public approval ratings. During the war, rising fuel costs and broader economic pressures became concerns for many Americans. A recent survey shows that many Americans believe U.S. military action has gone too far. Some 59% of U.S. adults said U.S. military involvement in the region “went too far,” according to an Associated Press-NORC survey released last week.
Trump’s approval ratings on economic issues also declined during the conflict. In an April AP-NORC poll conducted by The Hill, his approval rating for handling the economy fell to 30 percent. Public opinion about the economy has become more negative. The survey found that Americans are increasingly worried about the state of the economy as conflict and rising energy costs continue.
White House defends economy
this White House It has repeatedly argued that the economic pain is temporary. Trump administration officials say the short-term costs are necessary to prevent Iran from developing nuclear weapons. trump card Concerns about rising prices are allayed. He rejected a Labor Department report showing rising consumer prices, calling it a “false inflation report.” The president insists economic data remains strong. Trump said overall economic data remained positive despite concerns about inflation and fuel costs.
For the market, the most immediate thing is the sharp drop in crude oil prices. Brent crude was near $73 a barrel and WTI crude was near $70 a barrel, suggesting traders are no longer as worried about serious oil supply disruptions as they were in the early days of the Iran conflict. The key question now is whether lower oil prices will translate into cheaper gasoline. Trump’s threat of a Justice Department investigation targets precisely this question; whether oil companies will quickly pass on lower crude costs to U.S. consumers.
