G7 Releases 100 Million Barrels to Lower Diesel Prices

The Group of Seven agreed on October 2 to release 100 million barrels of crude oil and petroleum products from strategic reserves over four months to stabilize global energy markets. The coordinated action, managed by the International Energy Agency, includes a substantial, front-loaded release of diesel within the first 20 days. This agreement follows intense pressure from the United States, where President Donald Trump had threatened to ban U.S. diesel exports to lower domestic prices ahead of the November midterm elections.

Global fuel prices reached record highs due to the U.S.-Israel war against Iran, which led to blockades in the Strait of Hormuz, and Ukrainian strikes on Russian refineries. In the United Kingdom, diesel prices surpassed £2 per litre, prompting the government to maintain a fuel duty freeze and activate the National Emergency Plan for Fuel as a contingency. The crisis was further exacerbated by the planned maintenance shutdown of the Fawley refinery in Hampshire.

French President Emmanuel Macron coordinated the G7 response via videoconference after the European Union formally rejected the prospect of a U.S. export ban, warning of dramatic economic consequences. As part of the final accord, G7 members pledged to avoid restricting energy exports among themselves and to coordinate refinery maintenance schedules. Following the announcement, Brent crude fell below $100 a barrel and U.S. oil prices dropped approximately 5%. President Trump subsequently stated that an export ban was "never really on the table."