Trump accuses oil firms of gouging consumers as oil prices decline

Oil prices have dropped from above $110 per barrel to below $100, the Strait of Hormuz is reopening, and President Trump is pointing fingers at the companies that kept pump prices elevated while crude fell. The result: a Department of Justice probe that’s now sending ripples through the entire energy trading ecosystem.

On June 19-20, Trump confirmed that oil tankers were once again “flowing out” of the Strait of Hormuz, the narrow waterway that handles roughly a fifth of global oil transit. The de-escalation of US-Iran hostilities, which began with military actions in March, should theoretically mean relief at the gas pump. But here’s the thing: the national average price of regular gasoline hit $4.52 per gallon, a dramatic jump from the $2.98 consumers were paying before the conflict began.

The DOJ probe and $2.6 billion in suspicious profits

The Justice Department and the Commodity Futures Trading Commission are now investigating at least four oil trades that generated over $2.6 billion in profits. The trades were placed between March and April 2026, and each one was suspiciously well-timed, essentially betting on price drops shortly before significant announcements related to the US-Iran conflict.

Meanwhile, Senator Edward Markey has separately requested an FTC investigation into potential price gouging by major oil companies.

The Strait of Hormuz and the inventory problem

The conflict’s origins trace back to March 2026, when US military actions against Iran disrupted traffic through the Strait of Hormuz. Oil prices surged above $110 per barrel as traders priced in the possibility that a significant portion of global supply could be choked off for an extended period.

By June, Trump announced a de-escalation, and prices began their descent below $100. But the months of disruption left a mark that falling barrel prices alone can’t erase. Industry experts warned in early June that oil inventories had fallen to dangerously low levels during the crisis period.

What this means for investors

The $4.52 per gallon average, up from $2.98, also creates political pressure that could translate into policy action beyond investigations. Price gouging legislation, windfall profit taxes, or stricter oversight of futures markets are all tools that have been floated in previous energy crises.

If the investigations reveal that well-connected traders had advance knowledge of policy decisions, the fallout could extend far beyond the energy sector and into broader debates about market integrity and information asymmetry in commodities trading during geopolitical crises.

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