US to release 172 million barrels of oil as Trump taps strategic reserve

US President Donald Trump has authorized the ​release of 172 million barrels from the Strategic ‌Petroleum Reserve in a bid to bring oil prices down after supply shocks triggered by the US-Israeli strikes on ​Iran rippled through global markets, hitting consumers at the pump.

The move is part of a broader ⁠release of 400 million barrels of oil agreed ​to by the 32-nation International Energy Agency (IEA), US Energy Secretary Chris Wright said on ​Wednesday. The release will begin next week and take about 120 days to deliver, he added.

Average national gasoline prices in the US topped $3.50 a gallon as of Tuesday morning according to American Automobile Association data, a 17% jump from the roughly $3 average before the conflict. Prices now exceed $3 in all but one state – Kansas, where the average was $2.96.

With oil markets still volatile given shipping disruptions in the Strait of Hormuz, analysts warn $4 gas is on the horizon if the conflict persists.

According to the IEA, the conflict has severely disrupted oil flows through the Strait of Hormuz since February 28, when the US and Israel launched a joint offensive against Iran. Retaliatory strikes targeting their assets across the Middle East followed, and exports of crude and refined products currently stand at less than 10% of pre-conflict levels. 

Brent crude, the international oil benchmark, briefly climbed to around $119 per barrel on Monday, its highest level since mid-2022, before easing to $87.57 on Wednesday. When asked earlier on Wednesday whether he was looking at the threshold for the ​strategic petroleum reserve, Trump said Washington ​will "reduce ⁠it a little bit."

"The United States has arranged to more than replace these strategic reserves with approximately 200 million ⁠barrels ​within the next year," Wright said in a statement.

(With input from agencies)