US Oil Reserves Plummet Amid Iran Conflict

Oil prices have spiked to new heights as the ongoing Iran conflict continues to threaten global supplies. According to data from the Department of Energy, the US strategic petroleum reserve has fallen to its lowest level in over 40 years.

The reserves, which have a maximum authorized capacity of 727 million barrels, currently stand at 298.7 million barrels after plummeting by about 6.1 million barrels last week.

This drastic decline is largely attributed to the ongoing agreement between the US and the International Energy Agency (IEA) to release 400 million barrels to calm oil markets. The US has drawn down about 172 million barrels since March as part of this agreement.

The Strait of Hormuz, a vital shipping channel that accounts for a fifth of the world's oil supply, remains severely restricted amid the conflict. Iran has declared the waterway closed and warned of potential attacks on cargo vessels attempting to pass through without approval.