US-Iran War "Takes Its Toll" on America Itself
The US-Iran war in the Middle East is “taking its toll” on America itself. At least, this is evident from a new Reuters report on Tuesday (12/6/2026).
The “explosion” in fuel prices has forced President Donald Trump’s administration to introduce a new policy on Monday. Essentially, the federal government will release oil from its Strategic Petroleum Reserve (SPR) and lend crude oil from there to several energy companies.
This is part of a global agreement to calm the oil market, which has surged due to the US war with Iran. According to AAA data, the average petrol price in the US reached $4.52 (approximately Rp79,100) per gallon on Monday, the highest level since 2022.
The SPR is the US government’s emergency crude oil reserve, stored to address energy crisis conditions. The SPR serves as a “buffer stock” in the event of major disruptions to the global oil supply, such as wars, natural disasters, or extreme price spikes.
The oil within it is stored in underground facilities in the form of salt caverns in Texas and Louisiana. The US government can release oil from the SPR to the market to increase supply and stabilise energy prices, and conversely, the SPR can be replenished when market conditions are more stable.
Yesterday, the US Department of Energy (DOE) stated that nine energy companies are participating in the oil lending scheme, including Exxon Mobil, Trafigura, and Marathon Petroleum. The amount borrowed by these companies is only about 58% of the total 92.5 million barrels previously offered by the US government last month.
This programme is part of an international agreement led by the US with more than 30 member countries of the International Energy Agency (IEA) to release around 400 million barrels of oil to the global market. The agreement emerged after Iran closed the Strait of Hormuz, a strategic shipping route typically used by about 20% of the world’s daily oil supply.
The closure of this route has caused sharp spikes in oil and fuel prices in international markets. The US government itself has already lent about 80 million barrels of oil from the SPR earlier this spring, with Washington targeting the release of up to 172 million barrels from its strategic reserves.
Meanwhile, in a statement at the beginning of May, IEA Executive Director Fatih Birol said the war in the Middle East has created the largest energy crisis in modern history. According to him, the IEA is prepared to release additional oil reserves if supply disruptions continue.
Specifically in the US, the surge in energy prices now poses a political threat to Trump and the Republican Party. Especially with the US congressional midterm elections set for November, which threaten Trump’s position as president.
If the US continues to release or “tap” the SPR repeatedly, the impacts could be felt across several layers: the energy market, fiscal, and geopolitics. First, in the short term, SPR releases usually succeed in calming oil prices, but if done too frequently or on too large a scale, the long-term effects could differ.
The US SPR reserves will dwindle, thereby weakening the country’s ability to respond to future energy crises. The SPR is fundamentally an “emergency shield”—if the shield is used continuously, its durability diminishes.
From the market perspective, reliance on reserve releases could also create negative signals. Investors might assess that the global energy supply situation is fragile, thereby increasing oil price volatility rather than reducing it.
“The market could also anticipate government interventions, making price movements unstable or only temporary,” said energy economist Lutz Kilian from the University of Michigan, as quoted in Econstor.