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Energy Policy · Iran War · Oil Prices · Strategic Petroleum Reserve
Global oil prices have soared following the U.S. and Israel's war against Iran, with Brent crude jumping 8.5% to $92.69 and benchmark U.S. crude climbing 12.2% to $90.90 a barrel.
Despite this, President Donald Trump has dismissed the idea of utilizing the Strategic Petroleum Reserve (SPR) to alleviate market pressure and rising domestic gas prices, which have hit a national average of $3.41 per gallon. Trump, while acknowledging the U.S. has "a tremendous amount" of oil, criticized his predecessor for drawing down the reserves and indicated he would refill them at an "appropriate time." This stance contrasts with past presidents like Biden, Bush, and Obama, who tapped the SPR during geopolitical disruptions.
The escalating conflict in the Middle East continues to strain the energy sector, contributing to affordability concerns for U.S. consumers, particularly lower-income households, and adding pressure on the Republican Party ahead of November's midterm elections. The Treasury Department's temporary waiver allowing India to buy Russian oil is the only direct measure taken so far to ease market strain.
