Trump Convenes Oil CEOs as US Gas Price Hits 4-Year High of $4.18

President Trump convened a meeting of top oil and gas executives at the White House on Tuesday to address surging energy prices, which have seen US gasoline hit a four-year high of $4.18 a gallon following the effective blockade of the Strait of Hormuz.

"The president regularly meets with executives from the energy industry to hear their feedback on domestic and international energy markets," a White House official said, confirming the meeting included topics like domestic production, Venezuela, and crude futures.

The emergency talks, which included Chevron Corp. Chief Executive Mike Wirth, come as the ongoing war with Iran has choked off the Strait of Hormuz, a waterway responsible for about a quarter of global maritime oil shipments. This unprecedented supply disruption has pushed US national average gasoline prices to their highest level since 2022, according to data from the American Automobile Association (AAA).

With limited tools to curb prices tied to global crude markets, the Trump administration faces a mounting political crisis. While the White House has waived the Jones Act to ease domestic shipping, the move offers little relief from a structural global supply shock that simultaneously threatens to dampen economic demand while creating a boon for US LNG and crude exporters.

US Export Demand Surges Amid Supply Shock

The disruption in Middle Eastern supply is creating a significant demand pull for American energy exports. With global buyers scrambling to replace blockaded barrels, US producers of crude oil and liquefied natural gas (LNG) are seeing a surge in new orders. This presents a critical opportunity for the domestic energy sector to capture market share, even as the high prices risk destroying demand globally.

Policy Levers Limited in Face of Global Crisis

The meeting, attended by senior officials including White House Chief of Staff Susie Wiles and Treasury Secretary Scott Bessent, highlights the administration's search for solutions. However, with US pump prices intrinsically linked to global benchmarks like Brent crude, unilateral actions have a limited impact. The administration is caught between the political imperative to lower costs for consumers and the geopolitical reality of a widespread supply disruption.

This article is for informational purposes only and does not constitute investment advice.