The US Strategic Petroleum Reserve, the world's largest crude oil storage facility with capacity for 714 million barrels, was established following OAPEC's 1973 oil embargo to protect against supply disruptions and price shocks. Created using underground salt dome storage, the SPR has become a key energy policy tool, though it has operational limits on how much oil can be safely withdrawn.
The Strait of Hormuz has become the world's most critical crisis in 2026, with a seven-month conflict trapping over 600 ships in the Persian Gulf, driving oil prices above $100 per barrel, and expanding to threaten the Malacca Strait and East Asian shipping lanes. Diplomatic solutions have failed, 50,000+ US troops remain deployed indefinitely, and a parallel 'dark fleet' of 150+ tankers operates covertly, causing unreported casualties and environmental damage.
Europe's economy has proven resilient despite energy supply disruptions, with growth forecasts down only marginally despite Brent crude surging 58% year-on-year and the Strait of Hormuz effectively closed since March. The EU's two-decade investment in energy efficiency—running on 44% less energy per euro of output since 1995 and cutting emissions 40% since 1990—is shielding it from expected shocks, though efficiency gains appear as GDP decline rather than growth.
European natural gas prices reached their highest level since early 2023 as conflict between the US and Iran disrupted LNG shipments through the Strait of Hormuz, prompting the International Energy Agency to recommend governments use strategic reserves and flexible contracts to prepare for future shortages. Production damage at Qatar's LNG facilities and reduced storage incentives have compounded supply concerns, with Goldman Sachs estimating prices may need to exceed €100/MWh by December 2026 to attract sufficient LNG to Europe.