Could tapping the Strategic Petroleum Reserve lower gas prices? Here’s what experts say.

Gas prices are on the rise in the United States, with motorists facing a 20% increase per gallon since the start of the U.S. war with Iran. This surge in prices is attributed to disruptions in oil tankers traveling through the critical waterway known as the Strait of Hormuz, which handles one-fifth of the world’s oil supply daily. To address this issue, experts suggest tapping into the Strategic Petroleum Reserve (SPR), the nation’s emergency oil stockpile designed to counter supply shocks.

As of Tuesday, the average price per gallon stood at $3.54, up from $2.92 a month ago, according to AAA. President Trump has reassured shippers of the safety of the Strait of Hormuz and has even pledged insurance for ships sailing through the Persian Gulf. This assurance has calmed nerves in global energy markets, with oil prices dropping from almost $100 per barrel to $88.15 on Tuesday. However, crude prices remain significantly higher than before the war, at around $70 per barrel.

The White House is exploring various options to lower gas prices, including tapping into the SPR. U.S. Energy Secretary Chris Wright mentioned that the administration is open to utilizing the reserve to alleviate pressure on gas prices, although he believes that global oil supply is sufficient to prevent a significant price increase. Despite the potential relief the SPR could offer, energy analytics firm Wood Mackenzie warns that it may not fully offset the supply loss caused by the conflict in the Strait of Hormuz.

The SPR, established in 1975 under the Energy Policy and Conservation Act, serves as an economic “insurance policy” to provide petroleum during disruptions to the nation’s oil supply. It consists of four underground storage sites in Texas and Louisiana, with a capacity of up to 714 million barrels of crude oil. The reserve was last tapped in 2022 by the Biden administration to address soaring gas prices, marking the largest release in U.S. history.

While tapping into the SPR could provide temporary relief, its impact may be limited due to the scale of disruptions in oil shipments through the Strait of Hormuz. The reserve contains only a few weeks’ worth of oil compared to the daily traffic of 20 to 25 million barrels through the strait. Additionally, it takes 13 days for oil from the SPR to reach the market, and there are restrictions on the daily release amount.

Ultimately, reopening the Strait of Hormuz and ensuring safe passage for tankers may be the most effective way to lower oil prices. While utilizing the SPR can offer some relief, it is not a long-term solution to the underlying issue. As the world grapples with the impacts of the war on oil prices, finding a sustainable resolution remains a complex challenge for policymakers and energy experts alike.