US Strategic Petroleum Reserve drops to lowest level since 1983 amid Iran tensions

The United States Strategic Petroleum Reserve fell to its lowest level since 1983 after the US‑Iran conflict that began in February 2026 prompted releases of oil. As of June 12 2026 the reserve held about 340 million barrels, down from its 700‑million‑barrel capacity—an 18 % decline and the smallest combined U.S. oil stockpiles since 2023.

The drawdown was aimed at offsetting supply disruptions caused by the closure of the Strait of Hormuz, a key chokepoint for global oil shipments. The releases pushed Brent crude above $78 a barrel and lifted U.S. gasoline prices from roughly $3 per gallon in February to over $4.5 by May. Analysts note that the SPR is a short‑term buffer; prolonged tensions reduce flexibility and can increase consumer costs for fuel, jet fuel, and transport‑linked goods.

A tentative US‑Iran agreement in mid‑June to reopen the strait offers potential relief, but the depleted reserve leaves limited margin for future shocks.