US SPR Taps Dry: Higher Oil Prices Fuel Mining Cost Crunch

The US Strategic Petroleum Reserve (SPR) will not be tapped to ease fuel prices amidst the ongoing Hormuz crisis. The SPR is a vital emergency fund for America, holding approximately 308 million barrels of crude oil in salt caverns along the Gulf Coast.

This figure represents the lowest inventory since March 1983. Over the past four years, around 352 million barrels have been withdrawn through authorized releases. A significant single drawdown occurred under President Trump's orders in March 2026, when a massive 172 million barrel release was made to mitigate geopolitical disruptions around the Strait of Hormuz.

The sustained oil market disruptions linked to the crisis have pushed Bitcoin mining production costs to an estimated average of around $88,000 per BTC. This rise in costs may lead miners who can't cover their expenses either to shut down or sell reserves, affecting supply dynamics.

The decision not to tap the SPR represents a meaningful pivot from previous administrations' approach. They prioritized consumer fuel price management, whereas this administration's conservative approach aims to preserve remaining stocks rather than providing short-term relief. This could lead to higher sustained energy costs compressing mining margins and accelerating consolidation in the industry.