The U.S. Department of Energy has released roughly 80 million barrels of Strategic Petroleum Reserve crude to European buyers and major traders, a move that offers discounted sour grades amid the ongoing Strait of Hormuz closure. The release is part of an IEA‑led coordinated effort to disburse more than 400 million barrels from global strategic reserves, with the United States contributing about 172 million barrels over a 120‑day period that began in late March 2026 to help curb gasoline prices. To date, 79.7 million barrels have been distributed to 12 companies, including 50 million barrels to UK‑based Vortexa Ltd, 21.4 million to Trafigura, 18.1 million to Shell Plc, 9.7 million to Marathon Oil and 6.0 million to BP Plc. A supertanker, the Eagle Versailles, is en route to Rotterdam carrying about 2.1 million barrels of Bryan Mound medium sour crude sourced from the Texas SPR. The Texas SPR site holds approximately 250 million barrels, the largest single repository in the U.S. reserve system, while the overall SPR capacity is about 727 million barrels, of which 415 million were in storage before the release began, representing roughly 60% of total capacity. European refiners are buying the sour crude at discounts of roughly $5 per barrel compared with local grades, as Brent crude remains elevated near $105 per barrel. Although the SPR release temporarily offsets supply losses, analysts note it will only bridge the deficit caused by the Hormuz disruption for about 50 days, given that the war has cut off roughly 8 million barrels from global markets. Shipping volumes through the strait have fallen to about 5% of pre‑conflict levels, and insurance premiums have surged up to ten times, making the route less viable for the foreseeable future. Under the Strategic Petroleum Reserve oil exchange mechanism, the government loans oil from the emergency stockpile to refiners or traders, who are then required to return the same quantity of crude oil plus a premium, usually additional barrels, at a specified future date. For some 2026 loans, the DOE requires high sulfur (sour) crude to be returned by 2028 with up to 22% interest, often in sweeter, more valuable crude grades. Following the outbreak of the Ukraine conflict in 2022, the Biden administration loaned out millions of barrels, with returns delayed until 2026 to avoid market tightening. Europe was the destination of approximately 21 million barrels of crude from America's SPR release four years ago, accounting for 10% of the total. The Strait of Hormuz remains effectively closed to most commercial shipping, with Iranian officials stating it will remain closed because of blatant violations of the current ceasefire by the U.S. and Israel. Iran has granted priority passage to vessels from non-hostile nations, including China, Russia, India, Iraq, and Pakistan provided they pay tolls and follow Islamic Revolutionary Guard Corps (IRGC) protocols. Iranian authorities are reportedly charging tolls of over $1 million per ship and requiring all vessels to secure permits from the IRGC. Shipping firms remain hesitant due to the presence of sea mines, drone attacks, and the threat of seizure, with only about 5% of pre-conflict shipping levels currently transiting the waterway. Meanwhile, insurance premiums have surged up to 10x since the war began, rendering the route untenable.