US Strategic Reserve falls to 43‑year low amid US‑Iran tensions, gasoline tops $4

The United States' Strategic Petroleum Reserve (SPR) has dwindled to its lowest level since 1983, with inventories reported at roughly 311 million barrels – about 43 years low. The drawdown follows emergency releases intended to counter supply disruptions caused by the escalating US‑Iran conflict and the partial closure of the Strait of Hormuz, a key conduit for roughly one‑fifth of global oil shipments.

Global crude prices have surged, with Brent breaching $90 per barrel and U.S. WTI hovering near $85. The tighter market has pushed average U.S. gasoline prices above $4 per gallon, a level not seen since the early stages of the conflict. European markets, notably Germany, are also feeling the shock; diesel and gasoline supplies are tighter than crude, prompting the International Energy Agency (IEA) to warn of “significant supply pressure” and to call for the reopening of the Hormuz strait.

Analysts note that refining capacity constraints, alongside ongoing attacks on Russian refineries and the lingering effects of the Ukraine war, are compounding the supply squeeze. The combined impact is driving higher fuel costs for motorists, raising inflation concerns, and prompting policymakers in the U.S. and Europe to monitor the situation closely.