The Group of Seven major economies agreed to release 100 million barrels of crude oil and fuel from emergency stocks to bring down soaring diesel prices, coordinating with allied nations. President Trump announced the move on his Truth Social platform, stating European nations agreed to release a massive amount of diesel oil, with the process beginning immediately. The G-7 statement specified the reserve release would happen over four months, with the first batch prioritizing diesel for an initial 20-day period.
This move appears to end the threat of a U.S. ban on diesel exports, at least for now. The G-7 countries also agreed to take no measures to restrict the exchange of energy products between partner countries, as stated by French President Emmanuel Macron. The Iran and Ukraine wars have squeezed exports from two of the world's biggest diesel-producing regions, sending global prices to record highs.
Earlier, the Trump administration had considered restrictions or an outright ban on U.S. exports to curb prices ahead of midterm elections, though Trump reversed course after lobbying by oil companies like Exxon Mobil and Chevron, who warned such a ban could raise gasoline prices and devastate overseas supplies. Treasury Secretary Scott Bessent urged Europe to deliver on existing commitments and make additional supplies immediately available, arguing American farmers and businesses should not bear the burden of a global diesel shortage. The International Energy Agency previously coordinated a release of 400 million barrels in March, the largest in its history, though European nations have been slow to follow suit.
Germany, holding Europe's largest emergency stocks, had released only around 5 million barrels of its 19.5 million pledged total by the end of August. The U.S. has contributed roughly 130 million barrels from its Strategic Petroleum Reserve since March, leaving reserves at their lowest level since 1982. The G-7 said it would meet with other IEA nations to discuss further diesel reserve releases to the market.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing