The administration of U.S. President Donald Trump has approved the loan of 53.3 million barrels of crude oil from the United States Strategic Petroleum Reserve (SPR) to energy companies as part of a wider international effort to stabilise global oil markets.
The decision comes amid soaring oil prices driven by the ongoing U.S.-Israeli conflict involving Iran and disruptions surrounding the Strait of Hormuz, a critical shipping route responsible for transporting nearly 20 per cent of the world’s daily oil supply.
According to the United States Department of Energy, nine companies, including ExxonMobil, Trafigura and Marathon Petroleum, participated in the programme. The firms collectively borrowed about 58 per cent of the 92.5 million barrels initially offered by the government last month.
The latest release forms part of a broader strategy by the Department of Energy, which had already loaned approximately 80 million barrels earlier this spring as Washington moves towards releasing a total of 172 million barrels from the reserve.
The initiative follows a March agreement between the United States and more than 30 member states of the International Energy Agency to jointly release around 400 million barrels of oil from strategic reserves worldwide.
The coordinated action was aimed at easing mounting pressure on global energy prices after Iran moved to close the Strait of Hormuz during the escalating regional conflict.
IEA Executive Director Fatih Birol described the situation as the “biggest-ever energy crisis,” warning that further disruptions to supply could trigger additional emergency releases from global reserves.
Speaking earlier this month, Birol said member countries of the agency had so far released roughly 20 per cent of their available reserves and remained prepared to take further measures if necessary.
Rising energy prices have also emerged as a major political issue in the United States ahead of the November midterm elections, with Republicans seeking to retain their narrow majorities in Congress. Analysts say increasing fuel costs could influence voter sentiment as inflationary pressures continue to affect households across the country.
Data from AAA showed that average U.S. gasoline prices rose to $4.52 per gallon on Monday, marking the highest level since 2022.
Under the Department of Energy arrangement, companies receiving crude oil loans from the SPR are expected to repay the volumes in crude oil alongside premiums of up to 24 per cent. Officials said the framework was designed to help stabilise energy markets without imposing additional financial burdens on American taxpayers.
The Strategic Petroleum Reserve, which is stored in underground caverns across four sites along the coasts of Texas and Louisiana, currently holds approximately 384 million barrels of crude oil — equivalent to less than four days of global oil consumption.
