US Treasury Secretary Scott Bessent issued a veiled warning to oil and gas companies on Tuesday, urging them to lower prices or face scrutiny. Speaking on Fox News, Bessent said, 'I would encourage them to be good actors, especially in the 250th anniversary, because we’re watching.' His remarks came a day after President Donald Trump berated retailers on social media for not dropping prices fast enough, demanding they target $2.50 a gallon.
Bessent's Warning and Call for Lower Prices
Bessent addressed big oil companies, independent retailers, and international firms, suggesting they were making 'record profits' and that it was 'time to do something for the American people.' He emphasized that the administration is monitoring pricing closely, particularly ahead of the nation's 250th anniversary celebrations.
Trump's Social Media Demand
On Monday, Trump posted on Truth Social: 'Gasoline Retailers must get their Prices down, IMMEDIATELY! They’re too high considering that Oil is now at $68 a Barrel, and heading south. The Retailers must quickly react to this statement, and do what they know is right — DROP YOUR PRICE FOR OUR GREAT AMERICAN PEOPLE!' He warned that if prices don't drop, 'big problems lie ahead.'
Oil Prices and Market Context
Oil prices have fallen sharply this month after the US and Iran signed a memorandum of understanding to end their conflict. Despite recent clashes threatening the peace deal, Brent crude is only $1 more expensive than before the conflict began. The index is heading for its biggest quarterly loss since 2020, when the Covid-19 pandemic hit. However, the national average gas price stands at $3.85 per gallon—cheaper than a month ago but still higher than last year's Fourth of July holiday.
Travel and Holiday Expectations
Both Bessent and Trump invoked the upcoming 250th anniversary of the country's founding and the Fourth of July holiday. AAA projects a record-high 72 million people will travel during the holiday, despite higher gas prices compared with last year. The number of people driving or flying over the holiday weekend has remained relatively flat since last year, while cruises have gained popularity. Domestic car rentals are 10% more expensive than last year, and round-trip flight tickets average $830.
