The Group of Seven advanced economies announced a coordinated release of 100 million barrels of oil and diesel over four months, beginning immediately, following US President Donald Trump's threat to ban American diesel exports if European nations refused to tap their reserves.
The announcement came after Trump warned he would restrict US diesel exports, a major source of global supply, unless Europe released significant quantities from strategic stocks. The US exports roughly 1.2 to 1.5 million barrels of diesel daily, making it a vital supplier to global markets. Trump later said the export ban was "never really on the table" after European countries, led by France, agreed to the coordinated release.
The G7 commitment includes a "substantial release" of diesel within the first 20 days, coordinated through the International Energy Association. The group said it would also coordinate refinery maintenance schedules to prevent multiple facilities shutting down simultaneously and encourage countries with capacity to increase diesel refining. A joint statement stressed that G7 members will not impose export restrictions on energy products between themselves.
French President Emmanuel Macron chaired the G7 meeting and said the reserves release would "bring down the prices of petroleum products, particularly diesel." UK Foreign Secretary Ed Miliband stated the measures would "stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks."
Diesel prices had surged globally due to constraints from the Middle East conflict, which restricted crude oil and refined diesel flows, and Russian export bans following Ukrainian attacks on refineries. The UK imports over half its diesel, with 31 percent coming from the US. UK pump prices topped £2 per litre on Friday.
Brent crude oil briefly fell below $100 a barrel following the G7 announcement but rose back to around $102 by Friday evening as reports emerged of renewed Saudi-Houthi strikes in Yemen affecting shipping lanes. Matt Smith, director of commodities research at Kpler, noted oil reversed course "on rumours of Saudi Arabia planning an offensive into Yemen as it looks to re-establish a safe path via Bab-Al Mandeb."
Trump's Treasury Secretary Scott Bessent had argued US farmers, truckers and businesses "should not be left carrying the burden" as prices climbed. Trump stated on Friday that "what Europe did was a great thing" and that "Europe has a lot of diesel and they're going to be making a major world contribution."