G7 to release 100m barrels of diesel and crude under pressure from Trump
G7 countries have agreed to release 100 million barrels of diesel and crude oil from their strategic reserves, bowing to mounting pressure from US President Donald Trump. The decision comes as Trump attempts to bring down high diesel prices for US drivers ahead of November’s midterm elections, which will determine control of Congress. G7 leaders said on Friday that they would release 100mn barrels of refined products including diesel, co-ordinated by the International Energy Agency (IEA), “in light of ongoing market pressures”. “Taking into account commitments that have already been fulfilled,” they said, referring to a pre-existing pledge from March, “we will implement our commitments with co-ordinated release through the IEA of 100 million barrels (MB) to begin immediately over 4 months”. The plan will include the “substantial” release of diesel reserves within the first 20 days. The statement did not make clear how much of the 100mn barrel release would be crude and how much would be diesel. European diesel futures extended declines after the announcement, with the benchmark down 8 per cent to $1337.75, (€1187.65) a tonne, the lowest level since the start of September. If passed on at the pump, that would mean a fall of almost 13 cent in the price of a litre of diesel for motorists. Fuel excise cuts have been given a reprieve – but what happens if oil prices stay high? Wholesale diesel for sale in New York harbour fell almost 5 per cent to $4.43 a gallon. The White House had asked Europe to unlock at least 100 million barrels, according to two diplomats familiar with the matter, and threatened a ban on US diesel exports if European countries failed to meet its demand. In a post on his Truth Social account following the G7 statement, Trump said: “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately. Thank you for your attention to this matter! President DJT.” French President Emmanuel Macron said: “This work will begin by trying to prioritise diesel. In any case, France will make this effort for our stocks, which is a desire to send a clear signal to markets.” Budget Q&A: Submit your questions to our expert panel on budget day France had earlier proposed a plan in which Europe would release 50 million barrels of diesel and for IEA countries to unlock a further 50 million barrels of crude, according to several diplomats familiar with the matter. In March, Europe committed to release 73 million barrels of refined fuels as part of a 400 million barrel strategic stock draw co-ordinated by the IEA in response to the conflict in the Middle East. The US has largely completed its share of that programme, but some European countries have not yet met their obligations, according to Fatih Birol, head of the IEA. G7 leaders held a call earlier on Friday to discuss the US demands, according to multiple diplomats and officials. European leaders are wary of releasing stocks when the duration of the conflict with Iran remains uncertain and they are reluctant to be forced into a decision. “We fully reject a [US] ban on diesel. A ban would not be beneficial to anyone. It would undermine our trust in the US as a reliable partner,” said Anna-Kaisa Itkonen, a Commission spokesperson. She declined to comment on the French proposals. Diesel prices have been trading above $200 a barrel in the US, Europe and Asia for several weeks because of several shocks to the world’s refineries, including from the Iran war, Russia’s conflict with Ukraine and China’s decision to limit fuel exports. The price of diesel in the UK surpassed £2 (€2.35) per litre on Friday for the first time, according to the RAC. In Ireland, the fuel has been trading at around €2.14 in recent days. On Thursday it emerged that Beijing had not granted its biggest refineries any quotas to export fuel in October, except to Hong Kong and Macau. Macron spoke with Trump overnight, urging the need to work together to fight rising petrol costs and to ensure the availability of refined products worldwide. – Copyright The Financial Times Limited 2026