Democrats Urge Windfall Tax as Oil Firms Prepare to Cash in on the Iran War

Sen. Sheldon Whitehouse (D-R.I.) and Rep. Ro Khanna (D-Calif.) have proposed a windfall tax on major oil companies' Iran war profits, citing U.S. crude prices that have surged above $100 per barrel and average domestic gas prices topping $3.70 a gallon. ExxonMobil and Chevron stock prices have climbed more than 5 and 7 percent respectively since the conflict began last month, with analyses projecting oil firms could collect an additional $60 billion this year if prices remain at current levels. More than 70 state and national advocacy groups—including the Sierra Club and Public Citizen—sent a formal letter to Congress backing the proposal Tuesday, arguing revenue should be returned directly to households to offset rising costs. The U.K. raised $3.3 billion in the first year and $4.5 billion in the second year after imposing a similar tax following the 2022 energy crisis. Though a 2025 poll showed roughly 80 percent of American support for a windfall tax, the proposal faces resistance in Congress from lawmakers with ties to the oil industry.