U.S. Releases 8.48 MMbbl from SPR in Second Emergency Loan Amid Iran Conflict

Washington D.C., April 12, 2026 — The U.S. Department of Energy (DOE) has approved a loan of 8.48 million barrels (MMbbl) of crude oil from its Strategic Petroleum Reserve (SPR) to four energy firms, marking the second tranche of emergency releases aimed at easing market volatility amid the ongoing Iran conflict, according to Reuters.

The latest oil allotment has been awarded to Gunvor USA, Phillips 66, Trafigura Trading and Macquarie Commodities Trading, falling slightly short of the 10 MMbbl the DOE initially offered for this second round. The move forms part of a coordinated global effort led by the U.S. and other members of the International Energy Agency (IEA) to offset supply disruptions triggered by the conflict, Xinhua News Agency reported.

In total, the U.S. plans to release up to 172 MMbbl from the SPR by 2027, contributing to a joint global release of approximately 400 MMbbl agreed by the 32 IEA member states to address supply紧张 tied to the Iran conflict, according to Xinhua News Agency. IEA Executive Director Fatih Birol stated earlier that the phased release would be adjusted based on each member’s specific circumstances to ensure market stability.

This second tranche follows an initial release last month, where companies lifted around 45.2 MMbbl — roughly half of the volume on offer. The DOE has since announced a third offering of 30 MMbbl of sweet crude from the West Hackberry storage site in Louisiana, with bid submissions due in the coming days, Reuters noted.

Notably, the crude is being provided as loans rather than outright sales, requiring recipient companies to return the full volume plus additional barrels as a premium. The DOE emphasized that this structure supports market stability without imposing direct costs on U.S. taxpayers, according to China Energy News.

Currently, the SPR holds approximately 413 MMbbl, its lowest level since the mid-1980s. However, U.S. oil production capacity has surged over the past four decades; the country is now the world’s largest oil producer, with its 2026 production capacity expected to reach 13.76 million barrels per day, according to the U.S. Energy Information Administration (EIA).

The coordinated releases come as global oil markets remain under pressure, with the Iran conflict constraining flows through key export routes and pushing up prices. Sarah Johnson, senior energy analyst at IHS Markit, commented, “The SPR loans are a short-term but effective measure to mitigate supply shocks, though long-term stability hinges on de-escalation of regional tensions.”

Market analysts noted that while the SPR releases help ease immediate pressure, the EIA has revised down its 2026 global oil demand growth forecast to 690,000 barrels per day amid macroeconomic uncertainties, which may moderate the impact of supply disruptions in the long run, according to China Economic Net.