The Group of Seven nations agreed Friday to release 100 million barrels of reserves to address surging diesel fuel prices, after the Trump administration pushed Europe to deploy their stocks.
The G7 leaders said the deployment will begin immediately and continue over four months with "a frontloaded substantial diesel release within the first 20 days" coordinated through the International Energy Agency.
"We will convene in the context of the IEA in the coming days to discuss the possibility of additional diesel releases as necessary," the G7 leaders said in a joint statement. U.S. diesel prices hit record highs in September and remain elevated Friday at $6.37 per gallon on average.
The G7 members are France, Canada, Germany, Italy, Japan, the United Kingdom and the United States. France currently holds the group's presidency. The European Union also participates in its meetings.
President Donald Trump said moments before the G7 announcement that Europe had "agreed to release a massive amount of their heavily stocked Diesel Oil." The world is facing a fuel supply crisis due to Ukraine's attacks on Russian refineries and disruptions in the Middle East from the Iran war.
The Trump administration has been pressuring Europe to release diesel stocks as an alternative to the U.S. imposing an export ban. Treasury Secretary Scott Bessent said Thursday that U.S. partners in Europe "should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions."
The G7 leaders agreed Friday to "refrain from export restrictions on energy and energy products" between the members of the group, according to their joint statement. They also called "on all producers to refrain from imposing bans that could exacerbate market tensions."
Trump is facing mounting political pressure from Republican lawmakers to tackle soaring fuel prices ahead of the midterm elections in November.
The president said last week that he was considering an export ban, a move the oil industry and broader business community in the U.S. staunchly oppose. Trump subsequently seemed to lean against an export ban due to its potential impact on gasoline prices.
EU exposure to U.S.
The prospect of the world's largest diesel exporter implementing an outright ban raised alarm across the Atlantic. The U.S. supplied around half of the EU's diesel imports in August, according to the International Energy Agency, underscoring the 27-nation bloc's exposure to a potential U.S. export ban.
EU trade chief Maros Sefcovic said he had discussed diesel supplies and soaring prices with his counterpart U.S. Trade Representative Jamieson Greer.
"We have every interest in working together on lowering the prices, be it on diesel or also other products from oil and gas supplies," Sefcovic told reporters in Milwaukee at the G20 trade ministers meeting, according to Reuters.
He added that any move from the U.S. to restrict diesel exports would be unexpected and have a negative impact on Europe's economic outlook.
IEA emergency release
IEA members agreed in March to make available 400 million barrels of crude oil and refined products to address the supply disruption from the Iran war.
Europe pledged around 107 million barrels, 68% of which was fuel. Asia and Oceania made 108 million barrels available consisting of 40% fuel and 60% crude.
The U.S. pledged 172 million barrels, all of which were crude. Another 23 million barrels came from the Americas.
U.S. Energy Secretary Chris Wright said Tuesday that the "United States and Japan are delivering on their commitments," but "several European member countries have released only a fraction of the crude oil and petroleum products they pledged."
Wright's comment came after the Department of Energy announced the release of up to 40 million barrels of crude under U.S. commitments from March.