The U.S. Department of Energy announced plans to release more than 53 million barrels of crude oil from the Strategic Petroleum Reserve.
Washington – U.S. Department of Energy Plans announced on Monday More than 53 million barrels released crude from the Strategic Petroleum Reserve.
The oil will be loaned to various energy companies to provide relief to global markets that have been unsettled since the United States and Israel attacked Iran on February 28, sparking war and raising tensions in the Middle East.
The war has caused the price of a barrel of Brent crude oil, the international standard, to rise by 50% from pre-war levels of about $70, and triggered inflation in the global economy.
The U.S. Department of Energy has loaned about 80 million barrels of oil from reserves this spring as part of the U.S.’s commitment to add 172 million barrels of oil to international markets.
More than 30 countries have pledged oil as part of a global initiative to deliver some 400 million barrels of oil to the world.
One of the major disruptions to the oil market is the effective closure of the Strait of Hormuz, including a mutual blockade by the United States and Iran, attacks on military and commercial vessels, and the threat of mines. The strait is an important shipping corridor, through which 20% of the world’s oil normally flows.
A ceasefire between the two countries, which began in April but has been extended indefinitely, hinges on the reopening of the strait, but few ships have been able to pass.
As of Monday, President Donald Trump said the ceasefire was on “life support” after rejecting Iran’s latest offer to end the war. This raises the stakes for Trump Traveling to China this week. China is the largest buyer of sanctioned Iranian crude oil.
The Associated Press contributed to this report.
