The United States will release 172 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) in an effort to lower soaring energy prices caused by the U.S.-Israel war with Iran, U.S. Energy Secretary Chris Wright said Wednesday.
“The United States will release 172 million barrels of oil from the Strategic Petroleum Reserve to lower oil prices,” Prime Minister Wright said, noting that this move is part of a broader international response to stabilize global markets.
According to Wright, the release is part of a coordinated plan by the International Energy Agency (IEA), whose 32 member countries have agreed to jointly release 400 million barrels of emergency reserves to respond to supply disruptions.
The rollout will begin next week and will take approximately 120 days to ship, Wright said.
The move comes as tensions between Iran, Israel and a united front in the United States continue to roil global energy markets.
Iran’s Islamic Revolutionary Guard Corps’ threat to set fire to cargo ships if they try to transit the Strait of Hormuz, a vital shipping route carrying about a fifth of global oil trade, has effectively halted maritime traffic through the strategic waterway unless US and Israeli airstrikes are halted.
The war, which began on February 28, has already disrupted global trade routes, disrupted fuel and fertilizer supplies to the Gulf region and raised concerns about the stability of one of the world’s most vital energy corridors.
Despite the large release, Wright said Washington plans to replenish its strategic stockpile in the near future.
“The United States has agreed to replace approximately 200 million barrels more of these strategic reserves within the next year,” he said.
U.S. President Donald Trump has previously indicated that the U.S. is prepared to use reserves to control prices, saying "we will reduce it a little bit” if necessary.
As the conflict intensifies, concerns are growing that the economic shock will be prolonged. In addition to disrupting cargo transport through the Strait of Hormuz, Iran has also targeted oil fields and refineries in Gulf Arab countries.
At least 12 maritime accidents involving ships near the strait have been recorded since the war began, with several ships damaged in attacks.
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(Based on the opinion of the institution)