Trump administration joins historic International Energy Agency effort to stabilize global markets after attacks on tankers in the Strait of Hormuz send crude toward $100 per barrel.
The move represents one of the largest emergency releases in the history of the reserve and comes as global energy markets face mounting uncertainty following Iranian attacks on oil tankers in the Strait of Hormuz, one of the world’s most critical maritime chokepoints.
Trump: “We’ll Bring Prices Down”
President Donald Trump confirmed the decision during an interview on Wednesday, framing the move as a temporary measure designed to stabilize global markets.
“We’ll do that, and then we’ll fill it up,” Trump said. “Right now, we’ll reduce it a little bit, and that brings the prices down.”
Energy Secretary Chris Wright later confirmed that the oil release will begin next week and unfold over approximately 120 days, with the goal of easing supply shortages caused by shipping disruptions in the Persian Gulf.
Crude prices have surged to nearly $94 per barrel, approaching four-year highs as tanker traffic through the Strait of Hormuz slowed sharply amid security concerns.
Roughly 20 million barrels of oil per day — about one-fifth of global consumption — typically pass through the narrow waterway, making it a critical artery for the global energy supply.
Global Energy Markets Under Pressure
Iranian military officials have warned that oil prices could climb as high as $200 per barrel if hostilities escalate further in the Gulf region, according to reports from international news agencies.
The Trump administration initially resisted tapping the Strategic Petroleum Reserve, but growing instability in the shipping corridor forced a policy shift as energy markets tightened.
The U.S. currently holds about 415 million barrels in the Strategic Petroleum Reserve, according to the Department of Energy — roughly 59% of its total storage capacity.
The reserve, located in underground salt caverns along the Gulf Coast in Texas and Louisiana, was designed to provide emergency supplies during severe disruptions to global energy markets.
Strategic Reserve Debate Returns
The decision also revives long-standing political debate over the reserve’s role.
Trump previously criticized the Biden administration’s 2022 drawdowns, which were used to stabilize markets after Russia’s invasion of Ukraine. Administration officials argue those releases depleted the reserve and damaged portions of its storage infrastructure.
Energy Secretary Wright said the Department of Energy has already arranged contracts to replace the released oil with approximately 200 million barrels within the next year, exceeding the planned drawdown.
“President Trump promised to protect America’s energy security by managing the Strategic Petroleum Reserve responsibly,” Wright said in a statement.
Shipping Disruptions and Energy Security
The oil release is also intended to provide breathing room for global markets while diplomatic and military efforts continue to secure shipping routes in the Persian Gulf.
Iranian forces have targeted multiple tankers in recent weeks, prompting several shipping companies to temporarily suspend voyages through the Strait of Hormuz.
Wright expressed confidence that maritime traffic could resume soon.
“I think we will have the Strait of Hormuz open well before the full release is completed,” he said in a televised interview.
How Quickly Oil Can Flow
Under emergency conditions, the Strategic Petroleum Reserve is capable of releasing up to 4.4 million barrels per day within two weeks of a presidential order.
However, analysts warn that the actual flow rate may be closer to 2 million barrels per day due to aging infrastructure and operational constraints.
Even so, the coordinated IEA release could inject a significant amount of supply into global markets, potentially easing price pressures for consumers and industries already grappling with inflation and geopolitical instability.
For now, energy traders remain cautious as the war in the Middle East continues to reshape the global oil landscape.
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-- By Michael R. Thomas and Robert Douglass
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