The U.S. Department of Energy will release 172 million barrels from the Strategic Petroleum Reserve (SPR) starting next week, a move aimed at curbing soaring oil prices amid escalating conflict with Iran. Secretary of Energy Chris Wright confirmed the release, part of a broader International Energy Agency plan to discharge 400 million barrels, will take approximately 120 days to complete based on current schedules.
Oil prices have surged over 20% since Monday’s lows, reflecting heightened geopolitical tensions as Iran intensifies attacks on commercial shipping near the Strait of Hormuz and Dubai International Airport. The ongoing U.S.-Israeli military campaign against Iran, now in its 12th day, has targeted over 5,500 sites with the aid of artificial intelligence, according to a U.S. commander. Tehran residents report heavy airstrikes, anti-aircraft fire, and a pervasive smell of burnt powder and gasoline hanging over the city.
The SPR release comes as the U.S. grapples with the economic fallout of the conflict, which has already cost $11.3 billion in its first week, including $5 billion on munitions alone over the initial weekend, per Pentagon estimates shared with Congress. Wright noted that the U.S. plans to replenish about 200 million barrels to the reserve within the next year, despite President Trump’s earlier reluctance to tap into the SPR, which held over 415 million barrels as of last month.
Beyond energy markets, the war’s ripple effects are stark. Israeli strikes have extended into Lebanon, displacing over 800,000 people, while a recent attack on a car in central Beirut’s Ramlet al-Bayda area—far from known Hezbollah strongholds—has raised questions about targeting precision. Civilian casualties, including the bombing of a girl’s school likely caused by U.S. airstrikes, have drawn scrutiny, prompting Defense Secretary Pete Hegseth to call for a “hard reset” of military legal support to prioritize operational focus.
Israel has also initiated a fresh wave of strikes in Iran’s capital, while reports suggest Iran’s new supreme leader, Ayatollah Mojtaba Khamenei, was wounded at the war’s outset. With no immediate end to the conflict in sight, the SPR release stands as a critical buffer against further energy price shocks, though the scale of replenishment—200 million barrels targeted for next year—will be a key test of long-term market stability.
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