U.S. Offers Strategic Oil Loans Amid Global Tensions

The Trump administration has announced it will loan up to 30 million barrels of oil from the West Hackberry Strategic Petroleum Reserve. Companies can submit proposals until April 13, as part of an international effort to release 400 million barrels to ease supply amid ongoing geopolitical tensions.

The Trump administration declared on Thursday its plan to offer loans totaling up to 30 million barrels of crude oil from the West Hackberry Strategic Petroleum Reserve site. This marks the third proposal solicitation since the U.S.-Israeli conflict with Iran triggered surging fuel prices.

According to a document on the Energy Department's website, proposals for exchanging oil from the Strategic Petroleum Reserve can be submitted until 11 a.m. Central Time on April 13. The initiative is part of a multinational agreement among 32 countries within the International Energy Agency to release 400 million barrels of reserve oil to address supply issues driven by the conflict.

Under this plan, oil loans from the SPR mandate companies to return the borrowed quantity with additional barrels as a premium. This system, according to the Department of Energy, aims to stabilize markets at no extra cost to American taxpayers. The U.S. targets lending 172 million barrels from the SPR through 2027 as part of the broader IEA accord.

(With inputs from agencies.)