US to Tap Oil Reserves Following Trump's '180'

President Trump is cracking open the nation's oil piggy bank, despite opposition to a similar move by President Biden. The Trump administration will release 172 million barrels from the Strategic Petroleum Reserve in a push to cool surging prices tied to the US war with Iran and attacks on tankers in the Strait of Hormuz, per Politico. Energy Secretary Chris Wright said the drawdowns will start next week and run for about 120 days. The move is part of a broader effort by 32 International Energy Agency members to collectively inject 400 million barrels into the market, the largest coordinated release in the group's history.

Trump, who blasted President Biden for tapping the reserve in 2022 in response to the war in Ukraine, told a Cincinnati TV station, "We'll do that, and then we'll fill it up," and later touted the plan at a Kentucky rally as a way to "substantially reduce" prices, per Politico. The Wall Street Journal reports Trump suddenly did a "180" Tuesday after beginning the day believing intervention in oil markets wasn't needed. Trump previously promised to fill the oil reserve, though it's now under 60% full, holding 415 million barrels. Some storage caverns were damaged during Biden-era withdrawals, slowing efforts to refill them.

Despite the announcement, US crude futures hovered near $94 a barrel, as Iran struck more ships and warned of $200 oil. Wright said the US expects to replace 200 million barrels within a year and predicted Hormuz shipping could resume "in the next few weeks," well before the released oil reaches markets. Democratic leader Sen. Chuck Schumer countered that Trump should've begun releasing oil days ago and has "created many more problems than the strategic petroleum reserve will solve." He added Americans are "paying the price," as gas prices in the US climbed to an average of $3.58 a gallon, per the New York Times.