President Donald Trump on Monday ordered oil companies to lower consumer petrol prices immediately, after crude futures fell sharply when he cancelled a planned military strike on Iran. Brent crude dropped to around $83 a barrel, down more than five per cent in a single session, while US West Texas Intermediate lost over six per cent. The national average price of regular petrol in the United States, however, stood at $3.29 per gallon, only modestly below last week’s highs.

Retail prices typically lag movements in oil markets because filling stations continue to sell inventories purchased at earlier, higher wholesale costs. Trump’s demand, posted on his Truth Social platform, singled out Chevron chief executive Mike Wirth for failing to acknowledge the administration’s role in restoring the company’s operations in Venezuela. “Get your consumer (retail) oil prices DOWN, NOW!” he wrote.

The intervention comes as major US oil companies reported sharply higher second-quarter profits. Chevron posted its strongest quarterly earnings in six years, while Valero Energy recorded its best result since the 2022 energy crisis. The gains were driven by elevated crude prices and refining margins during the recent US-Iran tensions. Viewed from Washington, higher fuel costs and cost-of-living concerns pose a political risk for Trump’s Republican Party ahead of November’s midterm elections, in which it risks losing its House majority and possibly control of the Senate.

Trump had previously instructed the Department of Justice to investigate whether oil companies were overcharging consumers, and warned retailers to lower pump prices towards $2.50 per gallon or face “big problems”. The latest demand follows his announcement that negotiations with Iran are close, though Tehran has denied any talks are under way, saying discussions are limited to Strait of Hormuz management with Oman. The next milestone to watch is whether retail petrol prices begin to reflect the crude decline, and whether the administration escalates pressure on refiners and retailers.