The Trump administration has announced that the US plans to loan 53.3 million oil barrels from the Strategic Petroleum Reserve to energy companies, as part of a wider international effort to calm oil markets disrupted by the US-Israeli war with Iran. The decision comes after oil and fuel prices surged following Iran’s closure of the Strait of Hormuz, a key global shipping route through which around 20% of the world’s oil usually passes each day.

The oil will be loaned to nine companies, including ExxonMobil, Trafigura, and Marathon Petroleum Company. These firms borrowed only about 58% of the 92.5 million barrels that the Department of Energy had offered last month, showing that industry demand for the reserve crude was lower than the full available volume.

Why the US Is Releasing SPR Oil

• Market stabilization: The loan is aimed at easing pressure on oil markets after supply disruptions linked to the Iran conflict.
• Global coordination: The US release is part of an agreement with more than 30 International Energy Agency countries to release around 400 million barrels globally.
• Fuel price concern: US gasoline prices reached an average of $4.52 per gallon, the highest level since 2022, creating economic and political pressure.
• Loan, not sale: Companies receiving the oil must repay it in crude, with premiums of up to 24%, which the DOE says protects taxpayers.
• More releases possible: IEA chief Fatih Birol has said additional strategic oil releases could follow if war-related supply disruptions continue.

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Strategic Reserve Under Pressure

The Strategic Petroleum Reserve is stored in underground caverns at four sites along the coasts of Texas and Louisiana. It currently holds about 384 million barrels, which is less than four days of global oil consumption. The reserve is designed for emergencies, but repeated releases have made its level a major policy concern.

Earlier in the spring, the DOE had already loaned about 80 million barrels from the reserve. In March, the US also awarded contracts for 45.2 million barrels in the first batch of SPR oil loans related to the Iran war, followed by another 8.48 million barrels in April.

Key Numbers Behind the SPR Loan

Final Takeaway

The US plans to loan 53.3 million oil barrels from the Strategic Petroleum Reserve and this move shows how deeply the Iran conflict has shaken global energy markets. While the SPR loan may help ease short-term supply pressure, it also highlights a bigger challenge: the world remains highly exposed to fossil fuel supply shocks, especially when critical routes like the Strait of Hormuz are disrupted.

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