President Donald Trump has instructed the Department of Justice to "immediately start looking into" oil companies, accusing them of price gouging and failing to pass on lower oil costs to consumers at the gas pump. Trump stated on social media that "The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil," adding that "customers are being ‘gouged.’"
A spokesperson for the Department of Justice confirmed to ABC News that "The price of fuel is not only a national security issue, it impacts the wallet of every American. We will always commit to ensuring affordability in this nation."
The president's directive comes as oil prices have seen a recent decline. U.S. oil is trading at $70.13 a barrel, down 4.18%, and global oil is at $73.74, down 4.28%. These prices are nearing pre-war levels. The average price for a gallon of regular gas is currently $3.90, a decrease of 9 cents from the previous week, according to GasBuddy. During May, the average price of a gallon of gas reached $4.56.
This trend of lower oil prices is attributed in part to the U.S. Treasury's decision allowing more Iranian oil onto the market until August 21 and increased maritime traffic in the Strait of Hormuz. Secretary of Energy Chris Wright stated that oil and LNG traffic through the Strait of Hormuz has "already back to normal" following a preliminary agreement between the U.S. and Iran to reopen the critical waterway.
"Flows of oil and natural gas through the straits have already returned to normal, and they will continue that way whatever happens with the negotiations with the Iranians," Wright said on ABC News' "This Week." He also pointed to growing American production, surging production in Venezuela, and international cooperation as factors contributing to expected continued declines in energy prices for Americans.