US President
Donald Trump on Wednesday (local time) said that the United States would tap its strategic oil reserves to help reduce fuel prices as global energy markets reel from the escalating Middle East conflict.
"We'll do that, and then we'll fill it up," Trump said about releasing crude from the US strategic reserve. "Right now, we’ll reduce it a little bit, and that brings the prices down," he told reporters during a visit to Ohio, where he was promoting his economic policies.
Trump said the move was intended to ease pressure on oil prices and reduce costs for American consumers. Earlier, addressing a gathering in Kentucky, Trump also highlighted a coordinated global effort to stabilise energy markets.
"The International Energy Agency agreed to coordinate the release of a record 400 million barrels of oil from various national petroleum reserves around the world, which will substantially reduce the oil prices, as we end this threat to America and this threat to the world," he said.
He added that the coordinated move was aimed at maintaining global energy supply while the United States continues military operations linked to the ongoing conflict.
"My administration is also working to keep the oil flowing all over," the US President added. Trump also claimed that US forces had targeted Iranian naval assets in the Gulf region to protect maritime shipping routes.
"We have knocked out 58 naval ships. We knocked out their navy," he said, further adding that US forces had destroyed several Iranian vessels allegedly involved in laying mines that could threaten commercial shipping.
Massive reserve releases announcedEarlier, the United States department of energy said it would release 172 million barrels of crude from the Strategic Petroleum Reserve.
The agency said the release would begin "beginning next week" and that the distribution would "take approximately 120 days to deliver based on planned discharge rates," according to a post on X.
The release is part of a broader coordinated effort led by the International Energy Agency, whose 32 member countries have agreed to inject additional oil into the market to prevent further price spikes caused by the war in the Middle East.
The US departments announcement comes as the IEA earlier announced the release of 400 million barrels of oil from emergency reserves, far exceeding the 182.7 million barrels released in 2022 after Russia’s invasion of Ukraine.
IEA member countries collectively hold more than 1.2 billion barrels in emergency reserves, along with around 600 million barrels of industry stocks maintained under government obligations.
The emergency stocks will be released depending on the national circumstances of each member country and may be supported by additional emergency measures by some governments.
Strait of Hormuz disruption fuels crisisThe decision to release reserves comes as the security situation in the Middle East deteriorates sharply.
Global oil prices have been climbing steadily since February 28, when US and Israeli forces launched air strikes on Iran. The strikes reportedly killed Iran’s former supreme leader and pushed the region deeper into a prolonged conflict.
Iran has responded with drone and missile attacks across the region, disrupting shipping through the Strait of Hormuz, one of the world’s most important energy chokepoints. The narrow waterway between the Persian Gulf and the Gulf of Oman handles roughly 20% of global oil shipments.
Recent attacks on commercial vessels in the Gulf have effectively halted cargo movement through the strait, sending shockwaves through global energy markets.
Oil prices surge despite emergency measuresDespite the emergency releases, oil prices have continued to rise. Crude prices surged more than 9% on Thursday, pushing back above the $100-a-barrel mark.
Brent Crude jumped 9.3% to $100.50 per barrel, while West Texas Intermediate rose 8.8% to $94.92 at around 0305 GMT.
Earlier in the day, Brent had traded below $90 per barrel before the IEA announced plans for its members to release oil from their reserves.
The move to release oil from strategic reserves has also triggered political debate in Washington.
Chuck Schumer, the Senate Democratic leader from New York, said the decision should have been taken earlier. Speaking to reporters on Capitol Hill, Schumer said Trump had "created many more problems than the strategic petroleum reserve will solve."
He added that the effects of disruptions in the Strait of Hormuz were already being felt in the United States and warned that "Americans are paying the price."