Trump Dismisses Strategic Oil Reserve Use as Prices Skyrocket Amid Iran Conflict
Oil prices have soared dramatically in the week following the launch of a war against Iran by the United States and Israel, yet President Donald Trump on Saturday downplayed the necessity of tapping America's Strategic Petroleum Reserve to alleviate the mounting pressure on global energy markets.
Trump's Stance on Oil Reserves and Political Pressures
While aboard Air Force One, Trump was questioned by reporters about potentially accessing the reserve. As the conflict escalates across the Middle East, impacting critical oil and gas production and transportation routes, the global energy sector faces significant strain. In the U.S., consumers are already grappling with higher gasoline prices, a key component of the cost of living.
"We've got a lot of oil. Our country has a tremendous amount," Trump asserted. "There's a lot of oil out there. That'll get healed very quickly." With the Republican Party under scrutiny over affordability issues ahead of the November midterm elections, tapping the reserve represents one of the few unilateral actions a president can take to influence oil prices.
Understanding the Strategic Petroleum Reserve
The Strategic Petroleum Reserve consists of underground salt caverns located in Texas and Louisiana, capable of holding over 700 million barrels of oil, though it is not currently at full capacity. As of the end of last month, the reserve contained more than 415 million barrels, an increase from approximately 395 million barrels at the same time in 2025, according to data from the U.S. Energy Department.
Established after the 1970s Arab oil embargo, the reserve was designed to provide the United States with an emergency supply. Energy Department records indicate that the oil inventory peaked more than fifteen years ago, reaching over 726.6 million barrels at one point.
Historical Use and Current Context
Although the U.S. now exports more petroleum than it imports, the reserve has been utilized for various purposes over time, including mitigating the effects of hurricanes, ship-channel closures, and generating revenue for deficit reduction. Past presidents have accessed it during supply disruptions caused by geopolitical conflicts, aiming to increase market supply and lower prices.
- President Joe Biden significantly drew from the reserve in 2022 following Russia's invasion of Ukraine, reducing stockpiles to their lowest levels since the 1980s.
- In 1991, President George H.W. Bush authorized the withdrawal of nearly 34 million barrels during the Gulf War, though only 17 million barrels were actually used.
- President Barack Obama approved the release of 30 million barrels in 2011 to offset supply disruptions from Libya.
Why Trump Is Hesitant to Tap the Reserve Now
As the war with Iran intensifies, oil prices have spiked rapidly, reaching their highest levels since 2023. On Friday, the price for a barrel of Brent crude, the international benchmark, surged 8.5% to $92.69, up from nearly $70 a barrel just the previous week. Meanwhile, benchmark U.S. crude climbed 12.2%, reaching $90.90 a barrel.
The Trump administration has taken limited steps to address the price surge, such as the Treasury Department granting India a sanctions waiver to purchase crude oil and petroleum products from Russia until April 4, described as a "stop-gap measure" to "alleviate pressure" on the market. However, when asked about additional actions like tapping the Strategic Petroleum Reserve, Trump minimized the need, emphasizing the U.S.'s abundant oil resources and instead criticizing Biden for depleting the reserves.
Trump indicated he would refill the reserve at the "appropriate time, which is basically a gut instinct."
Impact on Gas Prices and Consumer Effects
Multiple factors influence prices at the pump. Nationally, the average gasoline price in the U.S. rose to about $3.41 per gallon on Saturday, an increase of approximately 43 cents from a week ago, according to motor club AAA. Since refineries purchase crude oil in advance, prolonged conflict could exacerbate price pressures. Even if oil were withdrawn from the reserve, refineries might continue to work with more expensive supplies temporarily.
Price disparities exist across states due to variables such as refinery proximity, local fuel requirements, and tax rates. On Saturday, California recorded the highest average at nearly $5.08 per gallon, while Kansas had the lowest at about $2.90 per gallon. Gas price increases are regressive, disproportionately affecting lower-income individuals who spend a higher percentage of their earnings on fuel, thus harming the most price-sensitive consumers.
Extraction Process from the Reserve
Oil, being lighter than water, floats to the surface in disasters like the Exxon Valdez and Deepwater Horizon incidents. To extract oil from the Strategic Petroleum Reserve, water is pumped into the salt caverns, causing the crude to rise to the surface. It is then captured and transported via pipelines to refineries for processing.
AP writer Seung Min Kim contributed to this report from Washington.
