Trump Administration to Release 172 Million Barrels from Strategic Petroleum Reserve Amid Iran War
The United States will release 172 million barrels of oil from the Strategic Petroleum Reserve (SPR) in an effort to stabilize global energy markets and lower prices amid the ongoing Iran war, Energy Secretary Chris Wright announced Wednesday. This action is part of a larger coordinated release of 400 million barrels from reserves of member nations of the International Energy Agency (IEA).
Rising Gas Prices and Supply Disruptions
Gasoline prices in the U.S. Have risen to an average of $3.58 per gallon, a nearly 22% increase from $2.94 a month ago, as the Iran war has caused significant disruption to global oil supplies . The conflict has also raised concerns about potential closures of the Strait of Hormuz, a critical waterway for oil transportation, and has already led to production shutdowns in Iraq .
Strategic Petroleum Reserve Details
The U.S. Currently holds 415 million barrels in its Strategic Petroleum Reserve, representing approximately 58% of its 714 million barrel capacity . The release of 172 million barrels will start next week and is expected to seize around 120 days to complete .
Trump’s Stance and Replenishment Plans
President Donald Trump, who previously criticized the use of the SPR by the Biden administration, stated that his administration will “reduce it a little bit” and then replenish the reserve. The administration plans to replace the released oil with approximately 200 million barrels within the next year . This approach mirrors a similar action taken during the Russian invasion of Ukraine in 2022 .
Political Reactions
Senate Minority Leader Chuck Schumer criticized the move, stating that Trump had “needlessly sown additional chaos and uncertainty” and that the release would not fully address the problems created by the ongoing conflict .
Market Response
Despite the announcement, crude oil prices closed higher on Wednesday, indicating continued market concerns about supply disruptions. Brent crude futures rose 4.76% to $91.98 a barrel, while U.S. Crude increased 5.98% to $92.47 a barrel .