US trade deficit hits $105.6 Billion as oil imports surge

The U.S. trade deficit widened to $105.6 billion in August, its largest since early 2025, as imports hit a record $420.8 billion on rising inflows of petroleum, gold and AI chips. Economists had expected $102.1 billion.

The rise in petroleum imports reflects how tight fuel supply has become. The Iran war has throttled tanker traffic through the Strait of Hormuz and Ukrainian strikes have hit Russian refineries, choking two major sources of global supply. U.S. diesel topped $6 a gallon for the first time last month, and the EPA has repeatedly waived fuel standards to boost domestic supply.

Governments keep reaching deeper into emergency stockpiles. In March, IEA members agreed to release a record 400 million barrels, more than double the 2022 drawdown after the start of the Russia Ukraine war, with the U.S. pledging 172 million barrels from its reserve. Global stocks have still dropped about 410 million barrels since the war began, and the EU is now weighing a second coordinated release as Washington presses Europe to put more oil on the market.