U.S. President Donald Trump’s administration announced plans to loan energy companies up to 92.5 million barrels of crude from the Strategic Petroleum Reserve (SPR) under a global pact to steady oil markets disrupted by the U.S.-Israeli war on Iran.
This tranche forms part of the 172 million barrels the U.S. committed in March to lend via coordination with over 30 International Energy Agency (IEA) nations, targeting a collective 400 million barrel release to alleviate market strains.
IEA Executive Director Fatih Birol has described the conflict as triggering the biggest energy crisis in history.
The U.S. previously tendered 126 million barrels across three batches, but companies borrowed under 80 million—roughly 63 percent of available supply, Reuters reported.
Full uptake of this latest offer would meet the 172 million barrel target, with bids closing May 4.
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Skyrocketing fuel costs threaten Trump’s Republican allies defending slim congressional majorities in November midterms. U.S. gasoline averaged $4.30 per gallon Thursday—highest since July 2002 per AAA data.
Crude benchmarks for gasoline, jet fuel, and diesel climbed nonetheless, touching a four-year peak above $126 per barrel Thursday amid fears of prolonged Middle East outages despite reserve draws.
SPR loans require repayment with up to 24 percent extra barrels as premium, ensuring market stabilization at zero taxpayer cost, per the Department of Energy.
Located in coastal Texas and Louisiana caverns, the SPR holds nearly 398 million barrels—roughly four days of global consumption.
Deliveries span June to August, with return deadlines stretching from early 2027 through mid-2029.
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