US Oil Reserves Hit 40-Year Low Amid Iran Crisis: Rising Gas Prices & Supply Risks

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The United States has drawn from its Strategic Petroleum Reserve (SPR) at a record pace, reducing the stockpile to its lowest level in 40 years, according to reporting by Spiegel. The decline, attributed to sustained global tensions in the Middle East and increased domestic demand, has raised concerns about energy security and inflationary pressures.

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The SPR, a government-controlled emergency oil reserve, held 366 million barrels as of June 2026, according to the U.S. Energy Information Administration (EIA). This marks the smallest inventory since 1983, as the Biden administration has released oil to stabilize markets amid geopolitical disruptions. Spiegel cited internal government data showing that 2026’s drawdowns exceeded 50 million barrels in the first half of the year alone.

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The Iran conflict has intensified pressure on global oil supplies, with the Strait of Hormuz—a critical shipping lane—remaining a focal point of regional instability. Wallstreet Online reported that U.S. officials have warned the reserve’s depletion could limit their ability to counter supply shocks, particularly if OPEC+ nations reduce output or if U.S. allies face sanctions.

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The American Petroleum Institute (API), a trade group representing oil companies, issued a statement in late May expressing “grave concerns” about the SPR’s dwindling levels. “At current rates, the reserve could be depleted within 18 months,” the API said, citing internal analyses. This aligns with warnings from T-Online, which reported that the Trump administration had ignored industry pleas to halt reserve draws during its final months in office.

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Gasoline prices have risen 12% year-over-year in the U.S., according to the U.S. Department of Energy. The Merkur reported that independent refiners are struggling to meet demand, with some operators pausing maintenance to keep pipelines running. “The SPR’s role as a buffer is diminishing,” said Dr. Lena Hartmann, an energy economist at the University of Texas. “Without replenishment, we risk a repeat of 1970s-style volatility.”

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The EIA has not yet outlined a timeline for restocking the SPR, but the Department of Energy told Ntv that “strategic considerations” are being evaluated. Analysts at Goldman Sachs noted that the reserve’s current level is 43% below its 2021 peak, a drop that mirrors the 1980s oil crisis. “This isn’t just about numbers,” said analyst Michael Chen. “It’s about the U.S. maintaining leverage in a fragmented global market.”

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The situation has sparked political debate. Senator Ted Cruz (R-TX) accused the Biden administration of “squandering a critical asset,” while Representative Alexandria Ocasio-Cortez (D-NY) called for emergency legislation to accelerate domestic oil production. The White House has not commented directly on the SPR levels but reiterated its commitment to “diversifying energy sources.”

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Historical comparisons highlight the urgency. In 1973, OPEC’s embargo drove U.S. oil prices up by 400%, triggering a recession. The SPR, established in 1975, was designed to prevent such scenarios. However, the current drawdowns—driven by both geopolitical and economic factors—have left policymakers with fewer options.

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Industry insiders warn that without immediate action, the U.S. could face a dual crisis: soaring energy costs and reduced geopolitical influence. “This isn’t a theoretical risk,” said Carl Roberts, a former Energy Department official. “It’s a ticking clock.”

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As of June 2026, the SPR’s depletion remains a focal point for investors and policymakers. The EIA has scheduled a public review of reserve management policies in August, but stakeholders say the window for decisive action is narrowing.

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