G7 Releases 100 Million Barrels to Lower Diesel Prices
G7 nations agreed to release 100 million barrels of oil and diesel after President Donald Trump threatened to ban U.S. diesel exports to lower domestic costs.
The Group of Seven agreed on October 2 to release 100 million barrels of crude oil and fuel 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 to provide immediate relief for farmers and truckers during the harvest season.
The agreement followed intense pressure from President Donald Trump, who threatened to ban U.S. diesel exports unless European allies, specifically France and Germany, tapped their own stockpiles. Trump sought to lower domestic fuel prices ahead of the November 3 midterm elections. French President Emmanuel Macron convened the G7 leaders via video call to finalize the accord, which also includes pledges to coordinate refinery maintenance and avoid restricting energy exports among partner countries.
The crisis was driven by record-high diesel prices—exceeding £2 per litre in the United Kingdom—caused by the U.S.-Iran war and the blockade of the Strait of Hormuz. In the UK, supply concerns were exacerbated by the planned maintenance shutdown of the Fawley refinery. While UK Transport Minister Keir Mather maintained that the national supply remains resilient, the government extended a fuel duty freeze to mitigate costs. Following the G7 announcement, Brent crude fell below $100 a barrel and U.S. oil prices dropped approximately 5%.
