US releases 53.3M barrels from Strategic Petroleum Reserve as Trump discusses Iran and energy security with Xi Jinping
The emergency SPR drawdown comes amid Strait of Hormuz tensions, a potential gasoline tax suspension, and a diplomatic call between Washington and Beijing that markets are still trying to decode.
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Add us on Google by Editorial Team May. 13, 2026The US government authorized the release of 53.3 million barrels of crude oil from the Strategic Petroleum Reserve on May 12, tapping the nation’s emergency stockpile as Middle East tensions threaten global supply lines. The move coincided with discussions between President Trump and Chinese President Xi Jinping focused on Iran and energy security.
Oil prices held firm despite the announcement. WTI crude sat at roughly $85 per barrel while Brent hovered around $88.
What the SPR release actually means
The Strategic Petroleum Reserve is America’s emergency stockpile, established in 1975 to safeguard against oil supply shocks, stored in underground facilities along the Gulf Coast in Texas and Louisiana that currently hold approximately 370 million barrels.
The most recent large-scale precedent came in 2022, when the administration authorized a historically massive drawdown that temporarily softened oil prices and fed directly into inflation debates.
Roughly 20% of the world’s oil passes through the Strait of Hormuz between Iran and Oman.
The Trump-Xi call and the gasoline tax wildcard
Trump and Xi spoke on May 11-12 about Iran-related energy security, though neither side has publicly disclosed the substance of those discussions. China is the world’s largest crude oil importer, and any disruption to Middle Eastern supply hits Beijing’s economy with particular force.
Separately, the US government is considering suspending the federal gasoline tax of 18.4 cents per gallon.
What this means for crypto and risk assets
The 2022 SPR release coincided with a period of intense inflation debate and aggressive Federal Reserve rate hikes, which contributed to one of crypto’s worst years on record.
Market analysts have flagged that an escalation in the Strait of Hormuz situation could trigger broader risk-off moves across asset classes, including crypto.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
