Trump’s Iran War Depletes Oil Reserves, Prices Hit $108
SkimNews Take
The global energy market's vulnerability to geopolitical instability is compounded by the rapid depletion of strategic reserves, leaving little buffer against further supply shocks.
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- The Wall Street Journal reported that the world is “burning through its oil safety net” as a result of President Trump's war with Iran.
- Oil reserves have fallen by nearly 250 million barrels in the first two months of the conflict, according to the Journal.
- Eurasia Group estimates U.S. diesel stocks will dip below 100 million barrels—a level not seen in 23 years—by month‑end.
- Ellen Wald of the Atlantic Council warned that consumption cuts are limited and “when inventories run out, they are going to run out,” implying continued price spikes.
- Zeteo said preparations for a new phase of Trump’s Iran war have accelerated, including a possible massive bombing campaign after his China visit.
- Brent crude futures rose above $108 per barrel, and Patrick De Haan projected U.S. gasoline could top $5 per gallon if the Strait of Hormuz remains closed.
Why it matters: The drawdown of 250 M barrels and diesel stocks falling below a 23‑year low means consumers and diesel‑dependent businesses will face higher fuel costs, while Iran’s control of the Strait of Hormuz intensifies the crunch and forces markets to absorb soaring price spikes.
