Energy Secretary Chris Wright announced Wednesday night that the United States will release 172 million barrels of oil from the Strategic Petroleum Reserve to help reduce energy costs during the Iran war.
Wright said the U.S. will start releasing barrels next week, but it will take about 120 days to deliver them all. President Donald Trump earlier said he would use reserves to keep energy prices in check.
“We’ll do it and then we’ll fill it in,” Trump said in an interview with Cincinnati station WKRC.
“I filled it up once and I’m going to fill it up again, but now I’m going to lower the price a little bit. That will bring the price down,” the president said.
U.S. gasoline prices have risen to an average of about $3.58 a gallon as the Iran war caused massive disruptions to global oil supplies, according to motorists group AAA. Current retail prices are nearly 22% higher than at the same time last month, when gas was about $2.94.
U.S. reserves currently stand at 415 million barrels, about 58% of licensed capacity of 714 million barrels. President Trump harshly criticized former President Joe Biden’s use of reserves.
Wright said the Trump administration would release 200 million barrels of oil over the next year at no cost to taxpayers.
President Trump’s decision came after the International Energy Agency agreed on Wednesday to release 400 million barrels of oil to address supply disruptions. This is the IEA’s largest release in its more than 50-year history.
Mr Wright said the US announcement was part of a broader effort by the IEA. The United States is a member of the IEA, along with more than 30 other countries in Europe, North America, and Northeast Asia.
