Oil Executives Warn White House Gas Could Top $5 as SPR Nears 349.2 Million Barrels
Updated
Updated · The Washington Post · Jun 11
Oil Executives Warn White House Gas Could Top $5 as SPR Nears 349.2 Million Barrels
3 articles · Updated · The Washington Post · Jun 11
Summary
$5-a-gallon gasoline is now a plausible near-term risk, oil executives told the White House, warning that fuel inventories could be exhausted within weeks during the summer driving season.
349.2 million barrels remain in the U.S. Strategic Petroleum Reserve—near a multi-decade low—as the Iran conflict enters a fourth month and disruptions in the Strait of Hormuz keep replenishment constrained.
Industry models show crude prices could jump 50% or more if inventories collapse, while executives fear the administration could respond with emergency steps such as restricting U.S. fuel exports.
The White House says gas has eased to a $4.15 national average from $4.52 a month ago after reserve releases and Jones Act waivers, but executives argue limited tanker traffic through Hormuz is not enough to avert a squeeze.
The standoff is raising political pressure on Trump, with May CPI running at 4.2% and allies warning that persistently high fuel costs could damage Republicans in the midterms.
As U.S. fuel inventories plummet, why are American oil and gas exports simultaneously hitting all-time record highs?
With the world's oil artery severed, is this the crisis that finally forces a global pivot away from fossil fuels?
With the Strategic Reserve depleted and policy options limited, what is the world's backup plan if the Strait remains closed?
Oil Market Turmoil 2026: Strait of Hormuz Blockade, Plummeting Inventories, and Recession Fears
Overview
The global energy market is facing a severe crisis after Iran targeted oil tankers and renewed attacks on US bases, leading to restricted shipping through the Strait of Hormuz. This disruption, combined with a US blockade that has cut Iran’s oil production and pushed OPEC output to its lowest in decades, has put immense pressure on global oil supply. As a result, oil prices have surged and strategic reserves like the US SPR are being rapidly depleted. The ongoing instability in the Strait continues to threaten supply, driving price volatility and raising fears of broader economic fallout.