Allianz Chief Economic Advisor Mohamed El-Erian discusses the financial impact of the Iran conflict as oil prices rise on ‘Mornings with Maria.’
As the conflict in Iran escalates with no end in sight, the US Department of Energy continues to pump oil into the emergency nation.
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 withdrawal that critics say could leave the US at risk as West Texas Intermediate (WTI) crude prices rise above $111 per barrel.
Crude oil will be extracted from the Bryan Mound field in Texas, and the department is accepting proposals from oil companies until Monday.
A NATION-BY-NATION VIEW OF GAS PRICES AS IRAN WAR PUSHES OIL MARKETS UP
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 the G7 countries to “assess market conditions,” which IEA Director General Fatih Birol said were “highly influenced by the Middle East conflict.”
An aerial view of Marathon Petroleum Corp’s Los Angeles Refinery is seen on April 2, 2026, in Carson, California. (Getty Images)
“The challenges of the oil market that we are facing have never been seen on a scale. Therefore, I am very happy that the member countries of the IEA have responded with a collective emergency action of unprecedented magnitude,” said Birol after the announcement about the release of emergency oil reserves.
The Department of Energy did not immediately respond to Fox News Digital’s request for comment, but in a press release, it said the filing of the SPR would come “at no cost to the American taxpayer.”
Analysts at Goldman Sachs have warned in recent weeks that output of 400 million barrels, the largest in history, may not be enough to cover supply disruptions caused by the closure of the Strait of Hormuz, which could lead to a shortfall of more than 10 million barrels a day.
Federal Reserve Bank of New York President John Williams discusses the market implications of the Iran War, the inflation outlook and more on ‘The Claman Countdown.’
As of early Friday afternoon, WTI – the US benchmark for oil prices – was up $112 per barrel, up slightly from the previous day. The national average for a regular gallon of gas is more than $4, more than $1 since the war began, according to AAA.
New York Federal Reserve Bank President John Williams warned that the effects of Iran’s war on energy prices could spread to many sectors of the economy during an interview on “The Claman Countdown” on Thursday.
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Rep. Mike Haridopolos, R-Fla., discusses oil prices amid the Iran conflict on ‘The Evening Edit.’
“There’s a price pass-through on many things we buy, including airfare. … As fuel costs are higher, airfares are going to go up,” Williams said. “It will spread. It usually takes us to other goods and services. That usually takes months or maybe a year to have a full effect.”
In a presidential address to the nation Wednesday evening, President Donald Trump indicated that military operations in Iran will continue for weeks, potentially adding pressure to the oil market.
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Fox News’ Alec Schemmel and FOX Business’ Nora Moriarty contributed to this report.
