G7 Agrees to Release 100 Million Barrels of Oil and Diesel After Trump's Export-Ban Threat

Trump threatened to cut off US diesel exports unless Europe opened its reserves. On Friday the G7 moved first: up to 100 million barrels — half diesel, half crude — released through the IEA over four months.

The Group of Seven agreed on Friday to release up to 100 million barrels of oil and diesel from their emergency reserves, after President Donald Trump threatened to cut off American diesel exports unless Europe opened its own stockpiles. The drawdown will be coordinated through the International Energy Agency, chaired by French President Emmanuel Macron, and run over four months — with a deliberately front-loaded surge of diesel in the first 20 days.

Trump spent the days before the deal pressuring European allies, particularly Germany and France, to tap their reserves as diesel prices climbed toward record highs before November's midterm elections. Announcing the agreement on his Truth Social account, he wrote: "Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately." He later told reporters that an export ban had been "never really on the table."

In a joint statement, G7 leaders said members had also agreed to "refrain from export restrictions on energy and energy products" against one another. Macron said the group wanted to "work in a coordinated manner to help bring down the prices of petroleum products, particularly diesel," and added that "President Trump, in particular, was very clear on this point." Roughly half the release will be diesel and half crude oil.

The squeeze is global. Diesel has been scarce since the US-Israeli war with Iran, launched in late February, constricted shipping through the Strait of Hormuz. Russia, another major producer, imposed its own diesel export ban after Ukrainian attacks on its refineries. The United States is a critical supplier, refining four to five million barrels a day and exporting 1.2 to 1.5 million of them.

Prices remain stubbornly high. The US national average for a gallon of diesel was $6.37 on Friday, down from a record $6.52 set on September 22, while US inventories hit a record low of 107.9 million barrels on September 11. Brent crude briefly dipped below $100 a barrel before climbing back to about $102 — still well above the roughly $73 it traded at before the Iran war. In Britain, diesel pump prices topped £2 a litre for the first time.

Analysts cautioned that the relief may be short-lived. Matt Smith of the commodity data firm Kpler said oil had reversed its slide on "rumours of Saudi Arabia planning an offensive into Yemen" as it looks to re-establish a safe path through the Bab al-Mandeb strait. The G7 said it would also coordinate refinery maintenance to avoid simultaneous shutdowns and encourage countries to ramp up diesel refining. In March, IEA members agreed to unlock 400 million barrels; officials say that release still isn't complete.

Sources: BBC, Al Jazeera, The Guardian