United States President Donald Trump has ordered the release of 172 million barrels of oil from the Strategic Petroleum Reserve (SPR) following a sharp rise in oil prices caused by tensions with Iran.
The release is scheduled to begin next week and will take about 120 days to complete, according to Energy Secretary Christopher Wright.
The plan is part of a coordinated effort by the International Energy Agency (IEA), whose 32 member countries, including many U.S. allies, announced they would release a total of 400 million barrels from their emergency reserves.
Wright said the U.S. plans to replenish the reserve with 200 million barrels over the next year, with Trump adding that it will be refilled after the release.
“For 47 years, Iran and its terrorist proxies have been intent on killing Americans. They have manipulated and threatened the energy security of America and its allies,” Wright said. “Under President Trump, those days are coming to an end.”
The price of U.S. crude oil (West Texas Intermediate) was trading at just over $92 per barrel on Wednesday evening. Oil prices had risen about 7.2% during the day and remained largely unchanged after the announcement, which analysts had already expected.
The Strategic Petroleum Reserve is stored in large underground caverns in Texas and Louisiana and contained about 415 million barrels last week. In total, IEA member countries hold over 1.2 billion barrels in their reserves.
The SPR was created in the 1970s after an oil embargo disrupted supplies to the U.S. and its allies. Since then, the reserve has been tapped during major price shocks, most recently in 2022 when Russia invaded Ukraine.
Oil prices surged after the U.S. and Israel launched military strikes on Iran nearly two weeks ago. Concerns over supply shortages have remained high because commercial traffic through the Strait of Hormuz, a key oil passage carrying about 20% of the world’s oil, has largely stopped. Some producers have also cut output due to the disruption.
Trump has promised to keep the strait open, offering insurance for oil tankers and warning Iran of severe military action if it attempts to block the route.
Iran recently indicated it may deploy naval mines, prompting Trump to warn of “military consequences…at a level never seen before” and say he is “thinking about taking [the strait] over.”
With shipping through the strait disrupted, tapping the Strategic Petroleum Reserve is one of several measures the U.S. is taking to manage high oil prices and potential shortages.
