Allianz Chief Economic Advisor Mohammed El-Erian discusses the financial impact of the Iran conflict due to rising oil prices on ‘Mornings with Maria’.
As the conflict in Iran intensifies with no immediate end in sight, the US Department of Energy is further increasing the country’s emergency oil supplies.
On Wednesday, officials announced a plan to borrow an additional 10 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) – part of a 172 million barrel shortfall that critics say could leave the US vulnerable as West Texas Intermediate (WTI) crude prices soar above $111 a barrel.
Crude oil is about to be extracted from the Brian Mound site in Texas and the department is also accepting proposals from oil companies till Monday.
State-by-state look at gas prices due to Iran war, surge in oil market
The latest move is part of an agreement with 32 other countries to release a total of 400 million barrels of oil from reserves. The International Energy Agency (IEA) held an emergency meeting at its Paris headquarters last month with energy representatives from G7 countries to “assess market conditions”, which IEA Executive Director Fatih Birol says have been “deeply affected by the conflict in the Middle East.”
In an aerial view, Marathon Petroleum Corp.’s Los Angeles refinery is seen in Carson, Calif., on April 2, 2026. (Getty Images)
“The oil market challenges we face are unprecedented in scale. Therefore, I am very pleased that IEA member countries have responded with emergency collective action of unprecedented size,” Birol said after announcing the release of emergency oil reserves.
The Energy Department did not immediately respond to Fox News Digital’s request for comment, but in a press releaseIt added that the replenishment of the SPR “will be provided at no cost to the U.S. taxpayer.”
Goldman Sachs analysts have warned in recent weeks that the release of 400 million barrels, the largest in history, may be insufficient to cover supply disruptions caused by the closure of the Strait of Hormuz, potentially leading to a shortfall of more than 10 million barrels per day.
Federal Reserve Bank of New York President John Williams discusses market impacts of the Iran war, inflation outlook and more on ‘The Claman Countdown’.
As of Friday afternoon, WTI – the US benchmark for oil prices – was above $112 a barrel, up slightly from the previous day. The national average for a regular gallon of gas is Over $4, Over $1 According to AAA, since the war began.
Federal Reserve Bank of New York President John Williams warned during an interview on “The Claman Countdown” Thursday that the impact of the Iran war on energy prices could spill over into many sectors of the economy.
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Rep. Mike Haridopoulos, R-Fla., discusses oil prices amid Iran conflict on ‘The Evening Edit’.
“Energy prices impact a lot of the things we buy, including airfare. … With higher fuel costs, airfares are going to go up,” Williams said. “It will spread around. It usually takes us into other goods and services. It usually takes months or maybe a year to have its full impact.”
In his presidential address to the nation on Wednesday evening, President Donald Trump indicated that military operations in Iran would continue for weeks, which is likely to put further pressure on the oil market.
Fox News’ Alec Schemmel and Fox Business’ Nora Moriarty contributed to this report.
