The United States administration led by Donald Trump announced on Monday that it will loan 53.3 million barrels of crude oil from the country’s Strategic Petroleum Reserve (SPR) to energy companies. The move is part of a wider international effort aimed at calming global oil markets that have seen sharp price increases during the ongoing conflict involving the United States, Israel and Iran.

The decision comes as oil prices continue to rise due to concerns over supply disruptions linked to the war. The release of oil reserves is intended to reduce pressure on fuel markets and improve supply stability at a time of growing global uncertainty.

According to the announcement, nine companies borrowed oil from the reserve. These included Exxon Mobil, Trafigura and Marathon Petroleum. Together, the companies borrowed around 58% of the 92.5 million barrels that the U.S. Department of Energy had offered last month through the loan programme.

The Department of Energy had already loaned nearly 80 million barrels from the Strategic Petroleum Reserve earlier this spring. With the latest announcement, the administration is continuing its plan to release a total of 172 million barrels from the reserve.

The larger release is part of an international agreement reached in March between the United States and more than 30 countries that are members of the International Energy Agency. Under the agreement, countries committed to releasing nearly 400 million barrels of oil from strategic reserves to reduce pressure on global energy markets.

The coordinated move was mainly aimed at controlling the rise in oil and fuel prices after Iran closed the Strait of Hormuz. The narrow waterway is one of the world’s most important oil routes and normally carries around 20% of the global oil supply each day. The closure created fears of major supply shortages and pushed energy prices sharply higher across international markets.

Fatih Birol, the head of the IEA, described the current situation as highly serious. He said the war has created the biggest-ever energy crisis. Birol also stated on May 7 that the agency is prepared to release more oil from reserves if disruptions caused by the conflict continue. According to him, member countries have so far released 20% of their available reserves.

The rise in fuel prices has also become a political concern in the United States. Higher gasoline prices are seen as a challenge for Trump’s fellow Republicans, who are trying to maintain their narrow majorities in Congress ahead of the November midterm elections.

Fuel prices in the country have climbed significantly in recent weeks. Data from AAA showed that the average gasoline price in the United States reached $4.52 per gallon on Monday. This is the highest level recorded since 2022 and reflects the growing strain on energy markets.

The Department of Energy said the oil is being loaned to companies under an agreement that requires repayment in crude oil along with premiums that can go as high as 24%. Officials believe the system will help stabilise markets without placing any financial burden on American taxpayers.

The Strategic Petroleum Reserve is stored in underground caverns across four sites located along the coasts of Texas and Louisiana. At present, the reserve holds around 384 million barrels of oil. That amount is lower than the total quantity of oil used globally in just four days, showing the scale of worldwide energy demand.