Trump Administration Releases More Strategic Oil Reserves as Iran Conflict Drives Energy Prices Higher
by YourNews.com, May 12, 2026
The Trump administration announced Monday that it will loan 53.3 million barrels of crude oil from the Strategic Petroleum Reserve to energy companies as part of a broader international effort aimed at easing pressure on global oil and fuel markets during the ongoing conflict involving Iran.
The move comes after oil prices surged following disruptions linked to fighting involving Iran and concerns surrounding the Strait of Hormuz, one of the world’s most important oil transit chokepoints.
The United States Department of Energy said nine companies, including Exxon Mobil, Trafigura, and Marathon Petroleum, accepted loans totaling about 58% of the 92.5 million barrels initially offered from the reserve.
The administration had already loaned roughly 80 million barrels from the SPR earlier this spring and is working toward releasing a total of 172 million barrels.
The United States agreed to the broader release in March through a coordinated agreement with more than 30 nations belonging to the International Energy Agency. The multinational arrangement called for approximately 400 million barrels of oil to be released globally to counter market instability caused by supply disruptions tied to Iran’s closure of the Strait of Hormuz.
The waterway normally handles roughly 20% of the world’s daily oil shipments.
IEA Executive Director Fatih Birol has described the ongoing conflict as the largest energy crisis in modern history.
Birol said May 7 that the agency remains prepared to authorize additional reserve releases if disruptions continue. According to the IEA, member nations have so far released approximately 20% of available strategic reserves.
Rising fuel prices have become a growing political issue ahead of November’s congressional midterm elections, where Republicans are attempting to maintain narrow majorities in Congress.
According to AAA data, the average national gasoline price reached $4.52 per gallon on Monday, marking the highest average since 2022.
Under the Department of Energy’s program, companies borrowing oil from the Strategic Petroleum Reserve must repay the loans in crude oil along with premiums reaching as high as 24%.
The administration said the repayment structure is intended to stabilize markets while avoiding direct costs to taxpayers.
The Strategic Petroleum Reserve currently contains approximately 384 million barrels of oil stored in underground salt caverns located at four sites along the coasts of Texas and Louisiana.
Current reserve levels amount to less than four days of total global oil consumption.
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Trump says he’ll move to suspend federal gasoline tax. He can’t do it on his own
WASHINGTON (AP) — President Donald Trump said Monday he will move to suspend the federal tax on gasoline to help Americans shoulder surging fuel prices caused by the Iran war.
The president cannot suspend the federal tax on his own. Congress would have to approve the move.
Lawmakers from both parties have pushed for a gas-tax suspension, saying it would provide much-needed relief for families and businesses that rely on their cars and trucks to get to work and school and run everyday errands.
As of Monday, the average national gas price was $4.52 a gallon, according to the AAA motor club, 50% higher than the average price of just under $3 a gallon before Trump began the war against Iran.
What the gas tax supports
The federal tax is currently set at 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel, an amount that does not include state taxes, which often are higher. The tax provides more than $23 billion per year in revenue for federal highway and public transit programs.
Asked by reporters at the White House how long the tax should be suspended, Trump said, “Until it’s appropriate.” While the tax is only a small percentage of the price of gas, “it’s still money,” Trump said.
As gas prices have spiked, the Trump administration has released millions of barrels of oil from the U.S. Strategic Petroleum Reserve and temporarily lifted sanctions on some Russian and Iranian oil shipments already at sea. The U.S. is negotiating with countries reliant on Middle East crude to join a coalition to police the Strait of Hormuz, where about one-fifth of the world’s traded oil normally flows.
Trump needs Congress — and they’re beginning to react
Republican Sen. Josh Hawley of Missouri said on social media Monday that he will introduce legislation to suspend the gas tax. Democrats have previously sponsored similar legislation. Rep. Anna Paulina Luna, R-Fla., also said in a post on X that she will introduce a bill “to suspend the federal gas tax in light of Trump’s recent remarks.”
Senate Majority Leader John Thune said Monday he has not “been a fan” of a gas tax suspension, but added: “You know, I’ve got some colleagues out there who think it’s a good idea. So, we’ll hear them out.’'
Thune, a Republican from South Dakota, said he’d prefer to reopen the Strait of Hormuz to “normalize gas prices” without legislation. “Obviously, any time you suspend the gas tax, that leaves a big hole in the highway trust fund, which also has implications down the road,” he said.
Sen. Rand Paul, R-Ky., said that “instead of suspending the tax, we should suspend the war.”
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