The Group of Seven (G7) announced on Friday a coordinated plan to release 100 million barrels of oil and refined fuel products over the coming weeks, beginning with a significant immediate release of diesel fuel. The announcement comes as diesel prices in the United States and Europe have surged to record levels in recent months, driven in part by geopolitical tensions and disruptions related to the ongoing conflict involving Iran.
U.S. President Donald Trump confirmed that the diesel release would commence "immediately," aligning with the G7’s commitment to a frontloaded distribution of diesel within the next 20 days, with the remainder to be discharged over four months. Trump made the statement via social media amid mounting pressure from his Republican Party to address steep fuel costs ahead of the November 3 midterm elections.
The move follows previous action taken in March when International Energy Agency (IEA) member countries collectively agreed to release 426 million barrels of crude oil and products to stabilize global markets. European Union countries pledged about 92 million barrels, primarily in refined products such as diesel. The current release is expected to add liquidity and may ease pricing pressures, European leaders said after a G7 videoconference chaired by French President Emmanuel Macron, whose country holds the rotating presidency of the group.
Diesel prices in the U.S. averaged $6.37 per gallon on Friday, according to AAA, dropping slightly from a record peak of $6.52 reached on September 22. Prices in Europe have similarly hit historic highs. These increases have been attributed to multiple factors, including supply disruptions. Russia’s suspension of diesel exports—prompted by drone attacks on its refineries—has tightened global availability. Although Europe does not import Russian diesel, other buyers such as Turkey and countries in Latin America now face competition from European buyers, further straining supply. Additionally, shipments from Persian Gulf nations have declined due to war-induced damage and blocked export routes.
Energy analysts noted that the diesel release in Europe could reduce U.S. diesel exports, potentially lowering domestic prices by 25 to 50 cents per gallon after several weeks. However, some uncertainty remains about whether the 100 million barrels represent an additional volume beyond the March pledge or constitute the remainder of that commitment, according to Pavel Molchanov, investment strategy analyst at Raymond James.
Calls from some U.S. Republicans to ban diesel exports to support domestic prices were dismissed by the G7 agreement, which emphasizes maintaining open energy trade among member countries. Trump also stated on Friday that a U.S. export ban was never under consideration, reaffirming cooperation efforts with Europe.
Experts caution that releasing strategic fuel reserves could provide short-term relief but carries risks. Jim Krane, an energy research fellow at Rice University’s Baker Institute, warned that depleting emergency stocks may leave Europe vulnerable in future crises and complicate efforts to restock reserves at more favorable prices. With ongoing conflicts affecting refinery infrastructure and supply chains, the timing of such releases is particularly sensitive.
President Trump’s announcement followed discussions with Macron, including a phone call and his participation in the G7 videoconference, as leaders sought to address rising fuel costs and secure petroleum supplies. Concurrently, Trump has embarked on a monthlong series of campaign rallies to energize voters ahead of the midterms, openly expressing frustration with public perceptions of his economic record despite what he describes as strong performance.