Trump Authorizes Release of Oil from Strategic Reserve Amid Iran Tensions

The Trump administration has authorized the release of 172 million barrels of oil from the U.S. Strategic Petroleum Reserve (SPR) in response to escalating tensions with Iran and disruptions to global oil supply. The move, announced on March 12, 2026, is part of a larger coordinated release of 400 million barrels from the International Energy Agency (IEA) member nations.

Responding to Strait of Hormuz Disruptions

The decision to tap the SPR comes as Iran has begun striking vessels in the Strait of Hormuz, a critical chokepoint for global oil shipments. This has raised concerns about potential disruptions to the flow of oil and a subsequent surge in prices. The release is intended to cushion the blow to the global oil supply and stabilize markets. Oilprice.com reports that the release is a direct response to the paralysis of traffic through the Strait of Hormuz.

Release Details and Timeline

The release of 172 million barrels will begin next week and is expected to take approximately 120 days to complete, based on planned discharge rates. U.S. Energy Secretary Chris Wright stated that the release is a result of a unanimous agreement among 32 IEA member nations to lower energy prices.

Impact on the Strategic Petroleum Reserve

Currently, the U.S. SPR holds approximately 415 million barrels of crude oil, with a total capacity of 714 million barrels. This drawdown will reduce the reserve to its lowest levels since 1982, representing a decrease of over 40% from its current holdings. Yahoo Finance notes that this is a significant portion of the nation’s energy backstop.

Comparison to Previous Releases

While substantial, this release is smaller than the 180 million barrel release authorized by the Biden administration in 2022 in response to Russia’s invasion of Ukraine. President Trump had previously criticized that release and pledged to replenish the SPR, but the current situation has altered those plans.

Market Reaction and Replenishment Plans

Oil prices initially fell on reports of the IEA discussing a large-scale release, but later rebounded amid Iranian strikes. Brent crude ended the week at $100 per barrel. The U.S. Government plans to replenish the SPR with approximately 200 million barrels within the next year, according to Secretary Wright. CBS News reports that President Trump stated the reserve would be “filled up” after being tapped.

Historical Context of the SPR

The Strategic Petroleum Reserve was established in 1975 following the energy crisis of the 1970s. It has been used periodically to address supply disruptions, including releases after Hurricane Ida in 2021 (3.3 million barrels) and Hurricane Katrina in 2005 (11 million barrels). The reserve’s first test sales occurred in 1985 and 1990, with 5 million barrels released in each instance to assess its readiness.