US not planning to tap strategic reserve as Iran war risks oil surge
#Strategic Petroleum Reserve#Iran#Oil prices#Strait of Hormuz#Opec+#Trump administration#Energy markets
📌 Key Takeaways
Trump administration has no plans to tap strategic petroleum reserve amid Iran tensions
US believes any oil price surge following attacks on Iran will be limited
Strait of Hormuz closure could overwhelm strategic reserves despite containing 415 million barrels
Opec+ may significantly increase oil production to counter potential supply disruptions
📖 Full Retelling
The Trump administration has confirmed it is not considering releasing oil from the US strategic petroleum reserve as tensions with Iran escalate, with a Department of Energy official stating there have been 'no discussions at all about the SPR' despite concerns that military action could disrupt Middle Eastern oil supplies and drive prices higher. This decision signals Washington's belief that any price surge following recent attacks on Iran will be limited, even as Iranian media reports suggest the Strait of Hormuz through which 20% of the world's oil flows may have been 'effectively' closed. The announcement comes as oil markets prepare to reopen on Sunday, February 28, 2026, with traders bracing for potential price spikes amid heightened geopolitical tensions in the oil-rich region. The US strategic petroleum reserve, which holds approximately 415 million barrels of oil, has historically been used to calm international markets during crises, such as in 2022 when Russia's invasion of Ukraine pushed prices higher. However, energy analysts suggest that while the SPR is a valuable tool, it might not be sufficient to prevent significant price shocks if Iran successfully closes the Strait of Hormuz, a critical chokepoint for global oil supplies. Meanwhile, market observers anticipate that members of Opec+, the oil producer group, could decide to significantly increase their output to counter potential supply disruptions, with sources suggesting they might approve an increase three or four times the initially planned 137,000 barrels per day for April.
🏷️ Themes
Geopolitical tensions, Energy markets, Strategic reserves
# Iran
**Iran**, officially the **Islamic Republic of Iran** and historically known as **Persia**, is a sovereign country situated in West Asia. It is a major regional power, ranking as the 17th-largest country in the world by both land area and population. Combining a rich historical legacy with a...
Strait between the Gulf of Oman and the Persian Gulf
The Strait of Hormuz ( Persian: تنگهٔ هُرمُز Tangeh-ye Hormoz , Arabic: مَضيق هُرمُز Maḍīq Hurmuz) is a strait between the Persian Gulf and the Gulf of Oman. It provides the only sea passage from the Persian Gulf to the open ocean and is one of the world's most strategically important choke points. ...
The price of oil, or the oil price, generally refers to the spot price of a barrel (159 litres) of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent Crude, Dubai Crude, OPEC Reference Basket, Tapis crude, Bonny Light, Urals oil, Is...
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US not planning to tap strategic reserve as Iran war risks oil surge on x (opens in a new window) US not planning to tap strategic reserve as Iran war risks oil surge on facebook (opens in a new window) US not planning to tap strategic reserve as Iran war risks oil surge on linkedin (opens in a new window) US not planning to tap strategic reserve as Iran war risks oil surge on whatsapp (opens in a new window) Save US not planning to tap strategic reserve as Iran war risks oil surge on x (opens in a new window) US not planning to tap strategic reserve as Iran war risks oil surge on facebook (opens in a new window) US not planning to tap strategic reserve as Iran war risks oil surge on linkedin (opens in a new window) US not planning to tap strategic reserve as Iran war risks oil surge on whatsapp (opens in a new window) Save Jamie Smyth in New York Published February 28 2026 Jump to comments section Print this page Unlock the White House Watch newsletter for free Your guide to what Trump’s second term means for Washington, business and the world The US is not considering releasing oil from its strategic petroleum reserve, signalling Washington believes any surge in prices following its attack on Iran will be limited. There have been “no discussions at all about the SPR”, a Department of Energy official told the FT, when asked about preparations the Trump administration had made to prevent a surge in crude prices that could dent the economy and send consumer prices higher. Oil prices are expected to jump on Sunday when markets reopen at 6pm in New York as traders react to concerns the war could disrupt oil supplies in the Middle East. Brent, the international benchmark, settled at $72.87 a barrel on Friday. The US strategic reserve holds about 415mn barrels of oil, a portion of which could be drawn down to soothe markets as was the case in 2022 when Russia’s invasion of Ukraine pushed prices higher. While the SPR is a valuable tool that can help to calm international ...
