U.S. strategic crude oil inventories fell to 293.4 million barrels last week. This marks the lowest level for the Strategic Petroleum Reserve (SPR) since 1982. The Energy Department reported a drawdown of approximately 5.3 million barrels during the period.
Emergency releases follow a near-total collapse of oil tanker traffic through the Strait of Hormuz. This chokepoint typically handles 20% of the global oil supply. Current vessel traffic in the strait has dropped to single digits.
Military tensions escalated in the Persian Gulf after a U.S.-Iran ceasefire agreement expired. Brent crude oil prices rose above $90 per barrel following the sustained supply shock. Markets are now pricing in risks of a prolonged conflict and persistent supply constraints.