US only has 43-day emergency buffer of crude oil left in 45-year low
The U.S. only has about 43 days of an emergency buffer of crude oil left — a 45-year low as President Donald Trump continues to wage war against Iran, throwing global markets into chaos
U.S. crude oil supplies have fallen to their lowest level in 45 years as President Donald Trump continues to wage war against Iran — with only 43 days of global supply left.
There now exists a thinner cushion against any potential disruptions should the fighting in the Middle East escalate further. According to Bank of America Global Research Data, compiled by Bloomberg, the U.S. has just 43 days of crude oil supply, including that of the Strategic Petroleum Reserve, compared with a long-term average of about 65 days.
The data shows the measure falling to its lowest level since the 1980s. The decline comes as markets fear tightening crude supplies as the U.S. continues to bomb Iran, raising concerns over shipments through the Strait of Hormuz. It comes after an embarrassing final video of Lindsey Graham exposed him humiliatingly mocking Trump over his Iran war flip-flopping.
After Trump, who has been accused by his own staff of 'letting his appearance go' on purpose after a sloppy discovery, launched the initial strikes against the Islamic Republic at the end of February, Iran seized control of the strait, closing it to through-traffic, stymying the flow of about 20% of the world's oil supply.
Any further disruptions to the strait could cause a greater impact on global oil supplies, which are already at multi-decade lows.
Lower inventories don't necessarily mean there's an immediate shortage, however. The market has been left with smaller buffers after unexpected supply disruptions in the past.
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Oil prices have always been sensitive to geopolitical developments, and the situation unfolding as a result of the Iran war isn't any different.
Brent crude jumped to over 2% and cleared the $90-per-barrel mark in early Asian trading in mid-July, while the U.S. West Texas Intermediate crude price stood at about $84.48 per barrel, about a 2.4% rise since June 12, per Seeking Alpha.
Stock prices hold steady as Trump throws uncertainty over markets
Stocks rose in morning trading on Wall Street Wednesday and added to their records set a day earlier, while oil prices held steady.
The S&P 500 climbed 0.4%. The Dow Jones Industrial Average added 584 points, or 1.1%, as of 10:45 a.m. Eastern time. The Nasdaq composite rose 0.1%.
The S&P 500 and the Dow both set records on Tuesday, while the Nasdaq is less than 2% from its record. Every major index has been surging this week, giving August a strong start.
The market is leaping as companies head into the closing stretch of their latest round of earnings reports with sharp overall gains. Three-quarters of the companies within the S&P 500 have reported results so far, and Wall Street expects profit growth of 50% when they are all finished.
The Walt Disney Co. rose 3% after easily beating Wall Street’s profit forecasts, helped by a $1 billion box office haul from “Toy Story 5” and theme park revenue.
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Booking Holdings jumped 6.6% after reporting that strong travel demand drove profit and revenue growth during its most recent quarter.
SpaceX fell 8.8%, despite reporting a smaller loss than Wall Street expected late Tuesday in its first quarterly report as a public company. The company did help give semiconductor giant Nvidia a 3.7% boost after announcing it would exclusively use that company’s chips for its artificial intelligence technology.
Treasury yields held relatively steady in the bond market. The yield on the 10-year Treasury remained at 4.63% from late Tuesday.
Markets in Asia rose. Benchmarks jumped more than 3% in Tokyo and Seoul as computer chipmakers and other AI-related companies climbed. European markets also gained ground.
Strong corporate profits and expectations for more growth ahead have been steering stocks higher. Wall Street has also been worried about stock prices becoming unjustifiably high, especially within the technology sector and for companies focused on artificial intelligence. Profit growth, especially for some of the big chipmakers, like Nvidia, could help justify some of the big investments those companies are making in AI.
AI-focused companies have been behind many of the big market swings and most of Wall Street's gains. That remained the case on Wednesday, with Nvidia leading the market higher. Micron Technology rose 1.8% to help support the gains.
Uncertainty about the direction of the U.S. war with Iran continues hanging over the market. President Donald Trump said a deal to reopen the Strait of Hormuz could come as early as Wednesday. But there have been many stops and starts during the five-month old conflict that has stifled the global supply of oil and rattled energy markets.
The price of Brent crude, the international standard, fell 0.6% to $78.81 a barrel. Oil prices have been swinging for months and were as high as $102 per barrel at one point during the conflict, jolting already stubbornly high inflation. Higher oil prices pushed gasoline prices higher and increased shipping costs for a wide range of products.
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Inflation concerns have been hanging over markets and the Federal Reserve. The central bank has been holding its key benchmark rate steady as it monitors the costs and the impact on the economy. Wall Street expects the central bank to raise rates at least once before the end of 2026. Household spending remains resilient, despite the stress from higher costs on everything from gas to groceries.
The jobs market has been one of the stronger areas of the economy, though growth has been slowing. Wall Street will get another update on Friday with the monthly employment report for July.
It comes after disrespectful Trump was slammed for a 'disgusting' act during Lindsey Graham's funeral.
