# Brent Nears $117 as Washington Lends Crude From a Strategic Reserve at Its Lowest Level Since 1982

The Energy Department released up to 400,000 barrels to a Louisiana refinery on the same day President Trump said the United States "may do another little Epic Fury" against Iran, and US crude closed above $100.

- Published: 2026-10-24T05:16:48.483Z
- Canonical: https://polylog.news/2026-10-24/brent-nears-117-as-washington-lends-crude-from-a-strategic-r
- Publisher: Polylog (Global desk)
- Section: markets
- Sources: [OilPrice](https://oilprice.com/Latest-Energy-News/World-News/US-Dips-Into-Strategic-Oil-Reserve-Again-Amid-Supply-Disruptions.html), [Globes (Hebrew)](https://www.globes.co.il/news/article.aspx?did=1001560609#utm_source=RSS), [Investing.com Commodities](https://www.investing.com/news/commodities-news/oil-prices-cool-from-5month-highs-as-trump-invokes-defense-production-act-4967880)

Oil rose for a second day on Friday. Brent crude closed at about $116.91 a barrel, up 3.3% on the session, [according to Trading Economics data](https://tradingeconomics.com/commodity/brent-crude-oil). Chinese financial press reported a close of $116.72, up 3.1%, and [FX168 described the move as a five-month high](https://www.fx168news.com/article/1107146). West Texas Intermediate, the US benchmark, closed above $100. [Investing.com](https://www.investing.com/news/commodities-news/oil-prices-cool-from-5month-highs-as-trump-invokes-defense-production-act-4967880) reported that crude was trading near the high it reached during the Iran war, with traders focused on Middle East supply.

The US Department of Energy authorized an emergency exchange of up to 400,000 barrels from the Strategic Petroleum Reserve's West Hackberry site to Phillips 66's Lake Charles refinery in Louisiana, [OilPrice reported](https://oilprice.com/Latest-Energy-News/World-News/US-Dips-Into-Strategic-Oil-Reserve-Again-Amid-Supply-Disruptions.html). The government calls the transfer an exchange, not a sale, and Phillips 66 must return the barrels with additional crude as a premium. According to the same report, the reserve is already at its lowest level since 1982. President Trump drew it down during the war with Iran, and President Joe Biden drew it down after Russia invaded Ukraine.

Three supply problems pushed prices up: attacks on Saudi Arabia, threats to shipping, and reduced output at two Libyan oilfields, [according to Trading Economics](https://tradingeconomics.com/commodity/brent-crude-oil). At a Florida rally, Trump said the United States "[may do another little Epic Fury](https://www.france24.com/en/americas/20261023-trump-says-us-may-launch-another-little-epic-fury-attack-iran)," using the military's name for its campaign against Iran. He gave no details.

The Israeli business daily [Globes](https://www.globes.co.il/news/article.aspx?did=1001560609#utm_source=RSS) linked Friday's losses on Wall Street and in Europe to the rise in oil and to tension in the Middle East. The shock is already showing up in consumer prices. Japan's core inflation rose to 2.1% in September, and [Reuters attributed part of that rise to fuel costs from the Middle East conflict](https://money.usnews.com/investing/news/articles/2026-10-22/japan-core-inflation-exceeds-boj-target-cements-near-term-rate-hike-chance).

Washington is now using several tools to hold down fuel prices before the November 3 midterm elections. It lends barrels from a depleted reserve, and it has [waived sanctions on Russian diesel](https://shipandbunker.com/news/world/445068-us-lifts-sanctions-on-russian-diesel-for-six-months-after-trump-putin-call). Seen from a sound-money view, both measures delay the price signal rather than add supply. Each barrel lent now is a barrel that will not be available in the next disruption.

## What this means

The reserve exchange moves barrels from the future into the present. It does not add to supply, and it leaves the United States with less emergency stock at the moment Gulf infrastructure is under attack. Importers with no reserve of their own are the most exposed: Japan, India and European diesel buyers pay through the import bill and through higher inflation. Producers outside the Gulf collect the premium. Markets have largely priced the White House's wish to avoid strikes before the vote. They have priced less of the post-election window, when [The Atlantic reports](https://www.iranintl.com/202610239786) multi-day strikes are under review. The 2022 precedent is relevant. A release of about 180 million barrels eased prices for some months, but it left the reserve at multi-decade lows and limited the response to the next shock. The likelier outcome is that Brent stays near current levels through November 3 and that the risk premium rises after the vote rather than falling. This depends on continued Houthi attacks on Saudi Arabia and no announced round of US-Iran talks. A public US commitment to negotiations, or a return of Iranian or Libyan barrels, would prove this read wrong.

## What to watch

- Further Energy Department exchanges or sales from the reserve. A string of small emergency releases would show that the administration has few remaining tools to cap prices before the vote.
- The restart of the two Libyan oilfields. A restart would remove one of the three supply problems behind Friday's rise and would show how much of the price is war premium.
- Houthi attacks on Saudi airports and energy sites. Continued strikes would keep the premium tied to Saudi export reliability, not only to Iran.