Europe will release up to 100 million barrels of diesel and crude over the next four months in a bid to cool surging fuel prices — a coordinated move through the International Energy Agency that followed days of pressure from Donald Trump, who had threatened a US diesel export ban. "The process will begin immediately," Trump declared on Truth Social.
The deal
The G7 announced it would "implement our commitments" with a frontloaded, substantial diesel release within the first 20 days by G7 members and partners, plus a pledge that members would refrain from export restrictions on energy products between G7 countries. The release followed an emergency G7 videoconference chaired by French President Emmanuel Macron on Friday, after Trump spoke to Macron on Thursday night and then to G7 leaders on Friday morning. Markets reacted fast: US diesel futures fell more than 4% to $4.4491 a gallon, and European diesel futures dropped over $100 a metric ton, per LSEG.
Pressure, then agreement
The US — the world's largest diesel exporter — had demanded Europe draw down its emergency stocks or face a possible American export ban, which would have hit Europe, a net importer, hard. The EU had earlier on Friday "fully rejected" the threat; a Commission spokesperson called it harmful to trust. Macron later denied any threats: "The dynamic of our conversation was not a dynamic of threats but it was constructive." He added that markets had already started coming down and the release should help lower prices globally.
Why it matters
Diesel is the workhorse fuel of the global economy, and prices remain near record highs. In the US, the national average gas price stood at $4.40 on Friday, down more than nine cents from last week (AAA) — but diesel in the Midwest has hit a record $6.50 a gallon, straining trucking and farming. Trump is pushing to lower fuel costs ahead of the November 3 midterm elections: Iowa, Ohio, Michigan, Kansas and Texas are among battleground farm states at risk. Meanwhile, Russia's suspension of diesel exports after Ukrainian strikes has deepened the squeeze — and Trump has told Ukraine's Zelensky to halt attacks on Russian refineries.
The takeaway: 100 million barrels is a serious intervention — but with the Iran war still choking the Strait of Hormuz, Europe is burning emergency reserves it may need later.
Watch: Trump pushes EU to release diesel reserves amid soaring fuel prices
Background: Global Diesel Crisis: China Halts Fuel Exports, Prices Surge
Sources: CNN, USA Today, New York Post