Selling oil from U.S. strategic petroleum reserve after attacks on Iran 'not currently being discussed' - U.S. source says
TL;DR
The U.S. is not discussing releasing oil from its Strategic Petroleum Reserve to counter price spikes after Iran attacks, relying instead on OPEC output hikes and market mechanisms. Oil prices surged 7% amid tensions, but experts warn prolonged conflict could force a strategy change.
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Selling oil from U.S. strategic petroleum reserve after attacks on Iran 'not currently being discussed' - U.S. source says
U.S. Strategic Petroleum Reserve Release Not Under Discussion Amid Iran Conflict, Sources Say
The U.S. government is not currently considering releasing oil from its Strategic Petroleum Reserve (SPR) to mitigate rising crude prices following recent military strikes on Iran, according to a Department of Energy official cited by the Financial Times. This decision comes as oil prices surged 7% on March 2 amid escalating tensions, with Brent crude hitting $72.87 per barrel on heightened fears of disruptions to the Strait of Hormuz, a critical global oil transit route.
The SPR, a government-held emergency oil stockpile, has historically been tapped during supply crises to stabilize markets. However, the official emphasized there have been "no discussions at all about the SPR" to counteract price volatility. This stance contrasts with past conflicts, where SPR releases were used to temper spikes. Analysts suggest the administration may be relying on OPEC's recent decision to increase output by 206,000 barrels per day, which could help offset supply concerns.
The lack of a SPR release underscores the administration's confidence in market mechanisms to absorb short-term shocks. OPEC's production hike, combined with potential U.S. and non-OPEC output adjustments, may prevent prolonged price surges. However, experts caution that prolonged conflict or direct attacks on energy infrastructure could overwhelm these measures, pushing prices significantly higher.
Gasoline prices, already averaging $2.98 per gallon—a four-year low— face upward pressure as tensions persist. Asian economies, particularly China and India, are also vulnerable, as they rely heavily on Iranian oil and could drive global prices higher by bidding for alternative supplies according to market analysis.
The Trump administration has framed the military campaign as a short-term operation, but analysts warn that extended hostilities or unintended escalations could force a reevaluation of SPR strategy. For now, markets remain on edge, with oil traders closely monitoring developments in the Persian Gulf and OPEC's ability to maintain output increases.
Forbes, March 2, 2026
CNN, March 1, 2026
Financial Times, February 28, 2026
Global Affairs, February 28, 2026
