Key facts
- US Strategic Petroleum Reserve stockpile has shrunk to levels last seen in mid-2023.
- Drawdowns began to mitigate oil prices from the Russia-Ukraine war.
- Concerns are rising due to the ongoing Iran war and Strait of Hormuz vulnerability.
The US Strategic Petroleum Reserve (SPR), the nation's emergency crude oil buffer, is rapidly shrinking and has reached levels not seen since mid-2023. This drawdown began as a measure by the Biden administration to counteract the oil price effects of the Russia-Ukraine war. However, with the ongoing Iran war and the persistent vulnerability of the Strait of Hormuz, the diminishing size of the SPR is increasing concerns about the global oil supply chain's resilience.