US SPR Left Dry Amid Hormuz Crisis Sends Crypto Miners Reeling

The US government has decided not to tap into the Strategic Petroleum Reserve (SPR) despite rising fuel prices tied to the ongoing Hormuz crisis. The SPR is a reserve of crude oil that serves as America's financial emergency fund, with approximately 308 million barrels stored in salt caverns along the Gulf Coast.

This figure represents the lowest SPR inventory since March 1983. Over the past four years, around 352 million barrels have been withdrawn through authorized releases, including a significant drawdown of 172 million barrels ordered by President Trump in March 2026. This move was aimed at providing temporary relief amid geopolitical disruptions around the Strait of Hormuz.

The decision not to tap into the SPR marks a shift from previous administrations' approach, which treated the reserve as a tool for managing consumer fuel prices. Instead, officials have chosen to prioritize preservation over intervention, aiming to preserve remaining stocks rather than drawing them down further to provide short-term price relief.

The implications of this decision are far-reaching, particularly for Bitcoin miners who rely on cheap energy to operate. With oil prices surging due to the Hormuz crisis, natural gas and electricity prices have also increased, feeding into broader inflation and influencing central bank policy. This, in turn, affects risk appetite across all asset classes, including crypto.

The sustained oil market disruptions linked to the Hormuz crisis have pushed Bitcoin mining production costs to an estimated average of around $88,000 per BTC. As a result, miners who cannot cover their expenses may shut down or sell reserves, impacting supply dynamics and potentially accelerating consolidation in the industry.