Congressman Brad Sherman Introduces Legislation to Prevent Oil Companies from Exploiting the Iran War and Put Money Back in Americans’ Pockets

WASHINGTON, D.C. — Today Congressman Brad Sherman (CA-32) introduced the Iran War Oil Crisis Windfall Profits Tax Act, which will impose a windfall profits tax on U.S. oil companies until (1) the President declares that all hostilities with Iran have ceased, (2) the Strait of Hormuz is fully re-opened, and (3) the price of oil per barrel drops below $75 per the West Texas Intermediate and will return revenues generated by this tax directly to American taxpayers to alleviate the burden of the Iran war on the American people.

“The President recently posted on social media that ‘when oil prices go up, we make a lot of money.’ The only ones profiting from higher oil prices are U.S. oil companies,” said Congressman Sherman. “For American families, rising oil prices mean higher costs and greater financial strain. My bill will ensure oil companies don’t profit from the hardship facing working families and will help offset the rising costs that Trump’s war has imposed on the American people.”

The war with Iran has driven global oil prices sharply higher, with U.S. benchmark West Texas Intermediate crude recently trading in the mid-$90s per barrel and, at times, even exceeding $100. These price increases are generating extraordinary profits for large oil producers and imposing significant strain on American families and businesses. There is no reason oil companies should benefit from the Iran War.

The Iran War Oil Crisis Windfall Profits Tax Actwould impose a 100 percent windfall profits tax on revenues derived from the sale of oil at prices above $75 per barrel (as measured by West Texas Intermediate) during the course of the Iran War. The $75 threshold reflects a reasonable baseline consistent with pre-crisis price expectations. This tax would remain in effect only until hostilities with Iran cease, the Strait of Hormuz is reopened, and the price drops below $75 per barrel.

To ensure that American families directly benefit from this policy, the legislation establishes a mechanism to return revenues generated by the windfall profits tax to American taxpayers. Funds collected will be rebated back to households to offset increased energy and transportation costs from Trump’s war. 

To view bill text, click here. 

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