Sen. Bernie Sanders (I-Vt.) demanded a windfall profits tax on oil companies, challenging President Donald Trump’s assertion that the U.S. is "making a fortune" from high energy prices linked to the Iran war.

Sanders argued that while corporate entities benefit, American households are bearing the cost. He stated the average U.S. household became $2,000 poorer due to the conflict. This aligns with an estimate from Moody’s Analytics chief economist Mark Zandi, who placed the war’s cost to consumers at approximately $265 billion.

Divergence between consumer costs and corporate gains

The senator highlighted a stark contrast between individual financial strain and industry profitability. Sanders noted that Big Oil gained $125 billion this year. This figure derives from a Joint Economic Committee Minority brief, which reported first-half 2026 profits for more than 20 major oil and gas producers at $125.2 billion.

In a post on X, Sanders wrote, "No, Mr. Trump. America is not making 'a fortune' off high gas prices, but your Big Oil pals are." He urged an end to the war and the implementation of the proposed tax.

Trump claims national profit despite price volatility

President Trump countered these concerns during a rally in Arizona, stating, "Our country is making more money than it’s ever made because of the fact that oil is so high." While claiming to care about "the little person," Trump maintained that the nation is still "making a fortune," though he expressed dissatisfaction until actual oil prices decrease.

Trump claimed gasoline prices had dropped to $1.85 per gallon, a level not seen nationally since the height of the COVID-19 pandemic. However, current market data contradicts this figure. According to American Automobile Association data, regular gasoline averaged $4.3344 per gallon on Friday, while diesel averaged $6.3261.

Market conditions and supply disruptions

Global oil markets remain volatile amid ongoing geopolitical tensions. Brent crude closed Friday at $109.86, its highest level since May 20. The surge is driven by supply disruptions from the U.S.-Israel conflict with Iran and the Russia-Ukraine war. Ukrainian strikes on Russian refineries have further exacerbated supply risks.

What the Numbers Show

The data reveals a significant disconnect between political rhetoric and market reality. While Trump cited a gas price of $1.85 per gallon, actual AAA data shows regular gasoline at $4.3344 per gallon, more than double the claimed figure. Simultaneously, the disclosure of $125.2 billion in first-half profits for major producers contrasts sharply with the estimated $2,000 loss per household, underscoring the transfer of wealth from consumers to producers during the period of elevated crude prices.

Sen. Bernie Sanders (I-Vt.) dismissed House Speaker Mike Johnson’s assertion that opposition to AI data centers stems from a Chinese psychological operation. Sanders argued that the 75% of Americans opposing such infrastructure, including a majority of Republicans, have legitimate concerns rather than being influenced by foreign actors.

Sanders challenges Johnson’s narrative

Sanders responded to Johnson via X, sharing a clip from a Fox News interview where the Speaker discussed Democratic messaging on the issue. "No, Mr. Johnson," Sanders wrote. "The 75% of Americans who oppose data centers, including a majority of Republicans, have not fallen victim to a 'Chinese psyop.'"

The Vermont senator emphasized that citizens are "rightly concerned about AI billionaires raising their electricity bills, destroying the environment and threatening humanity." This rebuttal directly counters Johnson’s earlier statement that such concerns are part of a coordinated effort by Beijing.

Johnson defends data center expansion

In the referenced Fox News segment, Johnson accused Democrats of employing "doom and gloom" tactics typical of election cycles. He stated, "Don’t buy it. It is a Chinese cy op," adding that he believes these ideas are being pushed by foreign interests. Johnson characterized the skepticism toward rapid AI infrastructure growth as a strategic distraction rather than a genuine policy concern.

Growing scrutiny on AI infrastructure

The debate occurs amidst increasing regulatory and public scrutiny of AI data centers. Microsoft co-founder Bill Gates recently warned that governments might need to experience serious AI-related problems, such as major cyberattacks, before taking technology risks seriously. Meanwhile, Sen. Chuck Schumer (D-N.Y.) criticized the Republican-backed Ratepayer Protection Act as "optional" and "toothless," arguing it lacks binding safeguards against rising electricity demand driven by AI facilities. The House passed this bill with a vote of 417-3.

Sen. Elizabeth Warren (D-Mass.) has also highlighted the local impacts, noting that communities near data centers face higher utility costs and strained water resources. She stated, "Americans shouldn't be subsidizing the cost of these data centers."

Congressional probes into foreign influence

House Republicans Jason Smith (R-MO) and John Moolenaar (R-Mich.) have requested Treasury and IRS officials investigate whether China-linked funding supports U.S. groups opposing AI data centers. The lawmakers alleged that some organizations might be using tax-exempt status to advance foreign interests. While Smith and Moolenaar acknowledged legitimate concerns over electricity and water usage, they questioned if China-linked groups were exploiting these issues to slow U.S. AI development. They did not establish that all data center opposition was connected to China.