The United States will loan more than 53 million barrels of crude oil from the Strategic Petroleum Reserve as part of an international effort to stabilize global energy markets amid continued disruptions tied to the Iran conflict.
By yourNEWS Media Newsroom
The Trump administration announced Monday that it will loan 53.3 million barrels of crude oil from the Strategic Petroleum Reserve to energy companies as part of a broader international effort aimed at easing pressure on global oil and fuel markets during the ongoing conflict involving Iran.
The move comes after oil prices surged following disruptions linked to fighting involving Iran and concerns surrounding the Strait of Hormuz, one of the world’s most important oil transit chokepoints.
The United States Department of Energy said nine companies, including Exxon Mobil, Trafigura, and Marathon Petroleum, accepted loans totaling about 58% of the 92.5 million barrels initially offered from the reserve.
The administration had already loaned roughly 80 million barrels from the SPR earlier this spring and is working toward releasing a total of 172 million barrels.
The United States agreed to the broader release in March through a coordinated agreement with more than 30 nations belonging to the International Energy Agency. The multinational arrangement called for approximately 400 million barrels of oil to be released globally to counter market instability caused by supply disruptions tied to Iran’s closure of the Strait of Hormuz.
The waterway normally handles roughly 20% of the world’s daily oil shipments.
IEA Executive Director Fatih Birol has described the ongoing conflict as the largest energy crisis in modern history.
Birol said May 7 that the agency remains prepared to authorize additional reserve releases if disruptions continue. According to the IEA, member nations have so far released approximately 20% of available strategic reserves.
Rising fuel prices have become a growing political issue ahead of November’s congressional midterm elections, where Republicans are attempting to maintain narrow majorities in Congress.
According to AAA data, the average national gasoline price reached $4.52 per gallon on Monday, marking the highest average since 2022.
Under the Department of Energy’s program, companies borrowing oil from the Strategic Petroleum Reserve must repay the loans in crude oil along with premiums reaching as high as 24%.
The administration said the repayment structure is intended to stabilize markets while avoiding direct costs to taxpayers.
The Strategic Petroleum Reserve currently contains approximately 384 million barrels of oil stored in underground salt caverns located at four sites along the coasts of Texas and Louisiana.
Current reserve levels amount to less than four days of total global oil consumption.