Treasury Secretary Scott Bessent issued a pointed message to oil and gas companies on Tuesday, warning them to lower fuel prices or risk unspecified fallout from the administration.
Speaking on Fox News, Bessent told major producers and retailers that they should "be good actors, especially in the 250th anniversary, because we're watching." The comment came hours after Donald Trump publicly pressured gas stations to slash prices, demanding they hit $2.50 per gallon and warning that "big problems lie ahead" if they don't comply.
Bessent added that oil companies were likely posting "record profits" and suggested it was time they "do something for the American people."
Crude prices have tumbled this month following a US-Iran memorandum of understanding aimed at ending conflict between the two nations. Brent crude is currently hovering just $1 above pre-conflict levels, putting the index on track for its largest quarterly decline since the 2020 pandemic crash. Despite the drop in raw oil costs, the national average gas price remains at $3.85 per gallon, down from a month earlier but still above Independence Day prices from last year.
The administration appears to be calibrating messaging around the nation's 250th anniversary and Fourth of July, with both officials invoking the holiday in their remarks. Trump has already ordered multiple renovation projects in Washington ahead of this year's celebrations.
Travel demand during the holiday period is expected to surge, with AAA forecasting 72 million Americans will hit the road or take to the skies. Car rental prices are running 10% higher than last year, while domestic airfare is averaging around $830 per ticket. The uptick hasn't deterred travelers so far, as driving and flying numbers have remained relatively stable compared to last year, though cruises and other travel methods have gained ground.
Author James Rodriguez: "Bessent's 'we're watching' comment reads like veiled pressure, but whether oil companies actually feel threatened enough to cut margins remains the real question."
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