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Financial Times
Donald Trump’s Iran war drains US oil stocks to lowest level since 2004
US crude and product stocks fell by 10.6 million barrels to 1.57 billion, the lowest since 2004, as Iran tensions disrupt Middle East supply and exporters redirect to Asia and Europe. Prices near $96 a barrel rose, while SPR actions cushioned volatility. The ongoing risk of Strait of Hormuz disruption compounds concerns about global supply tightness and inflation, with analysts warning prices could spike further if the strait remains closed. The report underscores the US role as a stabilising supplier while relying on reserve releases to temper near-term volatility, even as inventories remain under pressure amid higher exports and shifting flows.
MonitorConfidence: HighShort term horizonExecution risk: High
Published 4 Jun 2026, 00:40 UTC4 min read
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Summary
TL;DR
- Stocks down 10.6 million barrels to 1.57 billion
- SPR released and drawn down hundreds of millions of barrels
- US crude shipments up to 5.8 million bpd
- Strait of Hormuz risk remains a critical supply trigger
- Oil price around $96/bbl; potential spike if closure persists
- Exporters redirect barrels to Asia and Europe
Interesting facts
- The US is described as a 'supplier of last resort' for global oil markets amid disruptions
- Shale-driven supply growth has been offset by inventory draws in the current episode