Energy executives warn White House of critically low oil reserves amid stalled Iran negotiations and rising geopolitical risks.
US oil inventories fell by 9 million barrels last week, following a 7 million-barrel drawdown the prior week, as geopolitical tensions with Iran strain supply buffers. Industry warnings to the White House highlight projections of critically low stockpiles within weeks, complicating negotiations over Iran’s role in global oil flows.
The drawdowns reflect market expectations of a short-term price surge, driven by assumptions that the Strait of Hormuz would reopen quickly. However, prolonged conflict risks depleting reserves entirely, triggering a sharp repricing of crude and weakening the US negotiating position ahead of mid-term elections.
Iran’s strategy appears to leverage time, betting on domestic pressures and US political timelines to secure favorable terms. Meanwhile, physical market dynamics remain volatile, with traders balancing immediate sales against long-term supply risks.