The G7 announced the release of 100 million barrels of oil and diesel over four months, with a substantial diesel release within 20 days, after US President Donald Trump threatened to ban American diesel exports unless European countries tapped their reserves.
Trump had warned he would restrict US diesel exports if Europe did not increase market supply. His Treasury Secretary Scott Bessent argued that US farmers, truckers and businesses "should not be left carrying the burden" as prices climbed. The threat came before November's midterm elections, when diesel price surges feed into food and transport costs for American consumers.
The G7, comprising the US, UK, Canada, Japan, Germany, Italy, France and the EU, agreed to coordinate the reserve release through the International Energy Agency. The group also committed not to impose export restrictions on energy products between members. Trump later said the export ban was "never really on the table" and praised Europe's decision as "a great thing."
French President Emmanuel Macron chaired the G7 meeting. UK Foreign Secretary Ed Miliband said the measures would "stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks." The joint statement specified that a "frontloaded substantial diesel release" would occur in the first 20 days, with discussions around additional releases as necessary.
Global benchmark Brent crude briefly dropped below $100 a barrel following the announcement but rose back to around $102 by Friday evening. Matt Smith, director of commodities research at Kpler, attributed the rebound to renewed strikes between Saudi Arabia and Houthis in Yemen, which threatens shipping lanes.
Diesel constraints stem from Middle East conflict limiting crude supply and refined diesel flows, plus Russia's own export ban following Ukrainian attacks on refineries. The G7 also agreed to coordinate refinery maintenance schedules to prevent simultaneous shutdowns and encourage countries to increase diesel refining capacity.
The UK, which imports over half its diesel with 31% coming from the US, faced pump prices exceeding £2 per litre for the first time on Friday. The US exports roughly 1.2 to 1.5 million barrels of diesel daily from its four to five million barrel daily production, making it a critical global supplier.