Global oil inventories are plummeting as the U.S.-Israeli conflict with Iran accelerates fuel consumption. U.S. government stockpiles are set to hit their lowest level since 1983, while commercial tanks worldwide shed millions of barrels daily. The drawdown leaves the U.S. Strategic Petroleum Reserve barely half full, tightening the market’s safety net. Analysts warn that any further disruption could spark sharp price spikes.

President Trump claimed the United States and Iran are nearing a Iran peace talks breakthrough, sending crude prices below $90 a barrel. Though still above pre‑war levels, the dip reflects market optimism that Strait of Hormuz traffic will improve. Yet experts stress that without a sustained flow, gasoline and jet fuel inventories may turn scarce in import‑dependent economies.

Japan and South Korea, heavily reliant on imports, have seen reserves fall fastest, while China hoards an estimated one‑third of global stockpiles, largely untapped. The United States continues large‑scale exports, further draining its own supply. With the Strategic Petroleum Reserve already diminished, the federal government’s ability to cushion future shocks is markedly limited. Energy traders warn volatility could persist through year‑end.