U.S. Strategic Petroleum Reserve hits 40-year low amid Iran war supply disruptions

The U.S. Strategic Petroleum Reserve (SPR) has dropped to its lowest level since 1983, standing at 340.3 million barrels as of June 12. This decline is due to emergency releases aimed at easing oil supply disruptions caused by the Iran war. Despite a new U.S.-Iran deal to reopen the Strait of Hormuz, oil inventories globally are expected to keep falling for weeks or months as flow normalization will take time. Experts warn that oil prices may rise further as inventories remain critically low during peak summer demand.