US Crude Oil Supplies Hit 45-Year Low Amid Iran War
US crude oil supplies have reached a 45-year low due to ongoing tensions in the Middle East, specifically the Iran war. According to Bank of America Global Research data, the US Strategic Petroleum Reserve has not been this low since 1983.
The reserve currently holds approximately 304.8 million barrels of crude oil, which is enough to cover 43 days of supply. To combat rising energy costs, the Trump administration has released 172 million barrels from the reserves over a 120-day delivery window.
However, President Trump warned in June that relying on strategic reserves could lead to shortages and 'bedlam.' He also signed a memorandum with Iran aimed at de-escalating tensions and ensuring safe transit through the Strait of Hormuz. Although this agreement was short-lived, global crude prices surged by nearly 5 percent on July 8.
South Korea, Thailand, Vietnam, and Bangladesh have implemented emergency energy rationing policies in response to the price increases. China has also reduced its oil imports from the previous year by approximately 3.5 million barrels per day.