← All stories
Energy & Climate

Strategic Oil Reserves Nearly Depleted as Hormuz Strait Remains Closed

Breaking Points · Trump Eyes GROUND INVASION Of Kharg Island · July 16, 2026
Strategic Oil Reserves Nearly Depleted as Hormuz Strait Remains Closed
Breaking Points
Breaking Points
Trump Eyes GROUND INVASION Of Kharg Island
"We have burned through all the buffers we had. Everything all of that is gone now. Member countries have already released three quarters of the planned 400 million barrel emergency stock release that was announced in March. There's no more slack left within the system. And so if we do see another six to eight weeks or maybe even a few more months of war, it is almost inevitable that shortages will come up somewhere."
Energy traders warn that IEA member countries have released 75% of their 400 million barrel emergency oil reserves with no more buffer capacity remaining. Oil prices have rebounded to $80-85 per barrel, their highest since the ceasefire. Asian nations are particularly concerned about shortages within 40 days if the Strait of Hormuz remains closed, as no measures have been taken to refill strategic reserves.

About this episode

Breaking Points hosts Saagar Enjeti and Crystal Ball examine the escalating Iran conflict with particular focus on Trump administration deliberations about expanded military action. The most significant revelation comes from Wall Street Journal reporting that Trump received briefings on deploying ground troops to Iran and seizing Car Island in the Strait of Hormuz, alongside plans to bomb the Pickaxe Mountain nuclear site and expand energy infrastructure strikes. This marks a dramatic potential escalation from current operations. The episode also covers explosive allegations from Drop Site News that Iran warned Vice President JD Vance that Jared Kushner and Steve Witoff were manipulating negotiations for personal profit totaling nine billion dollars, though the White House denies this completely. On the economic front, energy experts warn that IEA member countries have exhausted three-quarters of their 400 million barrel emergency oil release with no buffer remaining, creating a potential crisis within six to eight weeks if the Strait of Hormuz remains closed. The hosts conducted an extended in-studio interview with Representatives Thomas Massie and Ro Khanna, who are promoting their new Epstein Transparency Act and discussing the recent House vote on Massie's amendment to strip Israeli aid. Massie revealed that his primary defeat was partly due to his opposition to the Iran war, which remains highly popular with the MAGA base at 70-80% approval. The episode explores the fractured messaging within the Trump administration, with Vance advocating for diplomatic solutions on Joe Rogan's podcast while Trump threatens to wipe out the IRGC. The hosts also preview Crystal Ball's segment on how DOGE policies contributed to disease outbreaks. Throughout, they emphasize the depletion of American military readiness, including munitions shortages and naval capacity concerns.

Key takeaways

More stories More from Breaking Points