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Economy
The US released 53.3 million barrels of strategic oil to major firms, including Trafigura and Marathon, to curb rising gasoline prices amid Iran tensions.
The United States has unleashed a massive new wave of crude from its Strategic Petroleum Reserve, awarding contracts for 53.3 million barrels to major companies. Commodity trader Trafigura Group and refiner Marathon Petroleum secured the largest allocations, according to the Department of Energy, which announced the awards on Monday.
This release is part of an unprecedented government effort to flood markets with state-owned oil, aiming to suppress surging gasoline prices driven by the conflict with Iran. The move comes just ahead of summer, when road trips push fuel demand to its annual peak. Trafigura received roughly 13 million barrels, the biggest single share, followed by Marathon and Exxon Mobil.
The average price for a gallon of regular gasoline in the US has climbed sharply since American-Israeli strikes on Iran began in February, topping $4.50 for the first time since July 2022. In a notable step, President Donald Trump announced Monday he is seeking to suspend the federal gasoline tax of 18.4 cents per gallon "until the time is right." Independent budget analysts estimate the suspension would cost the US Treasury billions of dollars each month.
The crude deliveries are scheduled between June and August, coinciding with peak gasoline consumption across the country. These volumes represent the second-largest sale in the history of the strategic reserve and are part of a broader international effort led by the International Energy Agency to lower global oil prices.
Last week alone, the US released a record 1.22 million barrels per day. The Trump administration has committed to releasing 172 million barrels under a "exchange" program, which lends oil to companies with the requirement that the same amount be returned later. So far, approvals have been granted for 133.1 million barrels, and it remains unclear whether the Energy Department will launch another round to reach the full target.
Interestingly, according to Bloomberg, some of this oil will not stay within US borders. Quantities are set to be exported to Europe and South America.
