The U.S. Department of Energy has announced a tender to exchange 86 million barrels of oil from the Strategic Petroleum Reserve. This is part of the process of releasing 172 million barrels aimed at reducing fuel prices, which have risen sharply since the start of the U.S. and Israeli operation against Iran.
This was reported by Bloomberg.
Deliveries of oil from the strategic reserve are set to begin by the end of next week, the Energy Department said on March 14. Prices for oil, gasoline, diesel and jet fuel have soared since the start of the war with Iran, which effectively shut down shipping in the Strait of Hormuz, through which about a fifth of the world's oil passes.
The release of 172 million barrels, announced on Wednesday, March 11, will last for about four months. It is part of a coordinated effort with other countries for a total of 400 million barrels.
Under the terms of the swap, companies must return the borrowed oil to the Department of Energy with additional barrels as a bonus. The Trump administration plans to replenish the reserve by about 200 million barrels over the course of the year — 20% more than the release.