US fuel costs climb as Iran conflict heats up, and Washington isn’t tapping the strategic reserve

Brent crude has been surging on the back of escalating US-Iran hostilities, with prices climbing above $80 per barrel and at times spiking as much as 13% during peak volatility windows. The kicker: Washington has signaled it has no plans to release crude from the Strategic Petroleum Reserve to cool things down. What’s driving the price spike The US-Iran conflict, which saw initial strikes between late February and early March 2026 before a temporary pause, reignited in July with renewed fighting. The immediate market consequence has been predictable but painful: Brent crude jumping 2-4% within days of each escalation. The Strait of Hormuz sits at the center of this story. Roughly one-fifth of the world’s oil supply passes through that narrow waterway between Iran and the Arabian Peninsula. When tensions flare in the region, shipping routes get disrupted, insurance costs spike, and traders start pricing in worst-case scenarios. The SPR problem The reserve currently sits at approximately 319.5 million barrels, its lowest level since 1983. Years of prior loans and releases, exceeding 100 million barrels, have left the cupboard looking pretty bare. The SPR’s capacity is around 714 mill...