1970s-Style Oil Crisis Threatens Discretionary Retailers

Chevron CEO Mike Wirth warned on May 25 that current oil market conditions echo the 1970s, raising recession fears from sustained high prices and Middle East disruptions. This follows May 24 reports linking elevated gasoline costs to weak consumer sentiment, with only 21% approving of the president's handling of gas prices. Discount retailers Walmart and Dollar Tree continue to benefit from trading-down behavior, posting strong sales gains, while Tapestry, Target, Best Buy, and AutoNation face downside risk if energy-driven inflation persists into summer 2026.