Trump Orders Major SPR Release Amid Iran War, IEA Coordinates Global Action

In a significant development impacting global energy markets, U.S. President Donald Trump has authorized the release of 172 million barrels of crude oil from the nation's Strategic Petroleum Reserve (SPR) in response to the escalating U.S.-Israeli war with Iran and subsequent attacks on shipping in the critical Strait of Hormuz. This action is part of a larger, coordinated effort by the International Energy Agency (IEA), whose 32 member countries unanimously agreed to release a record 400 million barrels from their emergency oil stocks. The decision comes amidst what the IEA has termed the 'largest supply disruption in the history of the global oil market,' triggered by the ongoing conflict in the Middle East. The war, which began with a joint U.S. and Israeli assault on Iran in late February 2026, has led to a dramatic increase in oil prices, with Brent crude briefly soaring above $100 per barrel, reaching nearly $120 a barrel earlier in the week before some retreat. These price hikes are a direct consequence of the severe disruption to oil flows, particularly through the Strait of Hormuz. Reports indicate that Iran has ramped up attacks on commercial vessels in and around the Strait of Hormuz, a vital chokepoint through which approximately one-fifth of the world's oil supply normally transits. The United Kingdom Maritime Trade Operations (UKMTO) reported multiple incidents, including three commercial vessels struck by projectiles in a single day, one of which caught fire and forced crew evacuation. Iranian military authorities have reportedly claimed 'complete control' over the Strait and warned that vessels attempting passage could be targeted, effectively halting cargo traffic. The IEA noted that crude and oil product flows through the Strait of Hormuz have plunged from around 20 million barrels per day to a mere trickle. U.S. Energy Secretary Chris Wright confirmed the U.S. contribution of 172 million barrels to the coordinated IEA release, stating that the drawdown would commence next week and take approximately 120 days for delivery. President Trump, who had previously downplayed the need to tap the reserve, confirmed his administration would proceed to 'reduce it a little bit' to bring prices down, with plans to refill the reserve later. This release is nearly as substantial as the 180 million barrel sale approved by former President Joe Biden in 2022 in response to Russia's invasion of Ukraine. India, a major global energy consumer and an associate member of the IEA, has welcomed the agency's decision to release emergency oil stocks. The Indian Ministry of Petroleum and Natural Gas stated that India is closely monitoring the evolving situation in global energy markets, especially in the Middle East, and stands ready to take appropriate measures to support global market stability in alignment with IEA efforts. India imports about 40% of its oil from the Middle East through the Strait of Hormuz and is the world's second-largest importer of liquefied petroleum gas (LPG), making it particularly vulnerable to disruptions in the region. The Indian government has already asked consumers to conserve energy and invoked emergency powers for refiners to maximize LPG production. India also maintains its own strategic petroleum reserves, with facilities in Visakhapatnam, Mangaluru, and Padur, holding approximately 36.92 million barrels (5.33 million metric tons) to provide a buffer against external supply disruptions. The IEA's coordinated release marks the sixth time the agency has deployed emergency reserves since its establishment in 1974, with previous actions taken during major geopolitical shocks such as the 1991 Gulf War, the 2011 Libyan civil war, and the 2022 Ukraine invasion. The scale of the current release, totaling 400 million barrels, is more than double the 182 million barrels released in 2022, underscoring the severity of the current crisis. The widespread flight cancellations in the Middle East and large-scale disruptions to LPG supplies are also expected to curb global oil demand, further exacerbating the complex energy landscape. This geopolitical turmoil not only affects energy security but also has significant economic ramifications, raising concerns about inflationary pressures and broader global economic growth.

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