US Crude Oil Reserves Plunge to Lowest Level Since 80s Amid Iran Conflict

The United States' crude oil reserves have been dwindling during President Trump's confrontation with Iran. The administration has been drawing from the Strategic Petroleum Reserve since March to address supply shortfalls, but economist Michael Snipes warns that once it's gone, it's gone.

According to Bank of America Global Research figures compiled by Bloomberg and referenced by The Associated Press, the U.S. currently maintains approximately 43 days of crude oil supply, including the Strategic Petroleum Reserve, compared to the historical long-term average of roughly 65 days.

This metric has reached its lowest point since the 1980s, providing minimal cushion should hostilities intensify or if petroleum transport through the Strait of Hormuz faces interruption. Snipes likened the reserve to a limited emergency fund: 'The current administration... is tapping the strategic oil reserve for the United States to help boost supply shortages due to the conflict in the Straight of Hormuz.'

Oil prices have fluctuated dramatically throughout the conflict, with Brent crude occasionally surging beyond $90 per barrel due to concerns about supply constraints and elevated shipping risks. Trump took aim at Exxon and Chevron following the companies' record-breaking earnings during a stretch of elevated oil prices.