Iran Conflict Drives US Crude Oil Supplies to 45-Year Low
US crude oil supplies have reached a 45-year low due to the ongoing conflict with Iran, which has effectively shut off the Strait of Hormuz to commercial traffic. The US Strategic Petroleum Reserve is at its lowest level since 1983, leaving the country with only 43 days of crude oil supply.
The Trump administration has been releasing oil from the reserves to combat rising energy costs. To date, approximately 108.6 million barrels have been released out of a 172-million-barrel drawdown over a 120-day delivery window.
Crude oil prices surged nearly 5 percent on July 8, with Brent crude rising 5.2 percent and West Texas Intermediate (WTI) climbing 4.4 percent. Several countries, including South Korea and China, have implemented emergency energy rationing and conservation policies to cope with the fallout.
President Trump has warned against relying on strategic reserves to keep the country afloat during war, saying 'We run out of reserves in about four weeks... We would really run out and there'll be a time when you wouldn’t be able to get it. And do you want to see bedlam?'