The Trump administration will loan 53.3 million barrels of crude oil from the U.S. Strategic Petroleum Reserve (SPR) to major energy companies as Washington tries to contain rising fuel costs linked to the escalating U.S.-Israeli conflict with Iran.
The Department of Energy announced Monday that nine companies, including Exxon Mobil, Trafigura, and Marathon Petroleum Company, secured oil loans through the emergency reserve program. The total borrowed amount represents about 58% of the 92.5 million barrels initially offered by the government last month.
The move is part of a broader international effort coordinated through the International Energy Agency. In March, the United States joined more than 30 countries in an agreement to release roughly 400 million barrels of oil into global markets to offset supply disruptions caused by the war and instability in the Middle East.
A major concern has been Iran’s closure of the Strait of Hormuz, one of the world’s most critical shipping routes for crude exports. Around 20% of global oil supplies normally move through the narrow waterway each day. Traders and governments fear prolonged disruptions could deepen the global energy crisis and push fuel prices even higher.
Fatih Birol, the IEA’s executive director, warned earlier this month that the conflict has triggered “the biggest-ever energy crisis.” He added that the agency remains prepared to authorize more emergency oil releases if supply interruptions continue. According to Birol, member nations have already released about 20% of available strategic reserves.
The U.S. Department of Energy has now loaned nearly 80 million barrels from the reserve this spring and aims to release a combined total of 172 million barrels under the international agreement.
The loans are structured so companies must repay the government in crude oil, along with premiums that can reach 24%. Federal officials argue the arrangement supports market stability without creating direct costs for taxpayers.
Rising gasoline prices have become a growing political issue ahead of the November midterm elections. President Donald Trump’s Republican allies are fighting to maintain narrow control of Congress while voters face higher energy bills across the country.
According to AAA data released Monday, the national average price for gasoline reached $4.52 per gallon, the highest level recorded since 2022.
The Strategic Petroleum Reserve currently holds about 384 million barrels of oil stored in underground salt caverns along the coasts of Texas and Louisiana. Despite its scale, that amount equals less than four days of global oil consumption.
