The Trump administration announced that it would loan 53.3 million barrels of crude oil from the U.S. Strategic Petroleum Reserve (SPR) to energy companies to counteract high crude oil prices amid the Iran war.

The loan is part of a global agreement aimed at stabilizing the oil markets disrupted by the ongoing war. Among the recipients of this loan are nine companies, including Exxon Mobil (NYSE:XOM), Trafigura, and Marathon Petroleum Corp. (NYSE:MPC).

Against this loan, the Department of Energy (DOE) will receive an approximately 28% return premium, representing 15.1 million barrels.

The DOE had previously offered to loan out 92.5 million barrels from the SPR. However, the companies only borrowed about 58% of the offered amount.

Kyle Haustveit, DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office, said, "These actions continue to move oil swiftly into the market, address near-term supply needs, and ensure that the Strategic Petroleum Reserve remains strong through the return of premium barrels."

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SPR Loans Aim To Ease Oil Shock

The loan from the SPR is not the first of its kind. The DOE had previously loaned as much as 10 million barrels of crude oil from the SPR located in Bryan Mound. This initiative is a part of a broader agreement with 32 nations under the International Energy Agency (IEA) to release 400 million barrels of oil from reserves to ease supply pressures instigated by the ongoing war in Iran.

These loans are part of a broader strategy to stabilize markets amid the ongoing U.S.-Iran war. The conflict has led to the closure of the Strait of Hormuz, a key oil transit route, causing global markets to remain on high alert. At 4:34 am ET, the Brent crude oil prices were trading 2.29% higher at $106.60 per barrel.

On Monday, President Donald Trump said Iran's latest response to a U.S. peace proposal was unacceptable, warning the ceasefire is now "on life support." Iran maintained its demands, including an end to military actions, compensation for war damages, restored oil exports and recognition of its control over the Strait of Hormuz.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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