US Oil Reserves Hit 1983 Lows as Iran Deal Reopens Strait

The United States Strategic Petroleum Reserve (SPR) fell to 340.3 million barrels for the week ending June 12, 2026, marking the lowest level since July 1983. The Department of Energy reported a weekly withdrawal of 8.9 million barrels, part of a broader effort by the Trump administration to release 172 million barrels to stabilize markets after a war with Iran closed the Strait of Hormuz in February.

President Donald Trump announced a ceasefire agreement with Iran to end hostilities and reopen the Strait of Hormuz on June 20. While Brent crude prices dipped to $83.89 per barrel following the news, energy experts warn that supplies will not recover instantly due to the need to clear sea mines and restart production. The conflict removed over 11 million barrels per day from global trade and left OECD countries with only 28 days of demand cover.

The current SPR deficit is the result of recent war-related draws, previous releases by the Joe Biden administration following the invasion of Ukraine, and Congressional sales to offset budget deficits. The reserve is now less than half of its 714-million-barrel capacity. To address the shortage, the Department of Energy aims to replace released crude with 200 million barrels over the next year.