The G7 nations, under the coordination of the International Energy Agency (IEA), have agreed to release up to 100 million barrels of oil and diesel. This coordinated measure aims to alleviate soaring global energy prices and comes after U.S. President Donald Trump threatened a diesel export ban.
The G7, which includes the United States, the United Kingdom, Canada, Japan, Germany, Italy, and France, along with representation from the European Union, issued a joint statement pledging to "refrain from export restrictions on energy and energy products" on one another. The agreed release will take place over a four-month period, starting immediately. It features a frontloaded, "substantial release" of diesel within the first 20 days.
The threat of a U.S. export ban on diesel had loomed large as Trump sought to lower domestic fuel costs for American consumers ahead of November's midterm elections. However, such a move would have severely restricted global supplies and spiked prices elsewhere. Trump had warned he would cut off U.S. diesel exports if European nations did not release more of their own stockpiles. Following the G7 agreement, Trump posted on social media: "Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately." Later, speaking at the White House, Trump walked back his threat, claiming an export ban was "never really on the table."
French President Emmanuel Macron, who chaired the meeting of G7 leaders, emphasized that the joint action would "bring down the prices of petroleum products, particularly diesel." Macron noted that the agreement specifically ruled out export bans, adding that "President Trump, in particular, was very clear on this point." Meanwhile, U.S. Treasury Secretary Scott Bessent had previously defended the potential export limits, arguing that American farmers, truckers, and businesses "should not be left carrying the burden" of skyrocketing energy costs.
Representing the UK at the summit, Foreign Secretary Ed Miliband stated that the coordinated release would "stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks." The UK is highly vulnerable to diesel disruptions, importing over half of its supply, with 31% of those imports originating from the US. Globally, the US is a dominant supplier. According to the U.S. Energy Information Administration (EIA), domestic refineries produce about four to five million barrels of diesel daily. While Americans consume roughly 3.6 million barrels, refiners export the remaining 1.2 to 1.5 million barrels per day, making the country a critical supplier to international markets.
The global energy market has faced severe constraints, particularly due to the conflict in the Middle East, which has limited the flow of crude oil and refined diesel. This situation escalated after the US and Israel invaded Iran, pushing global benchmark Brent crude from around $73 a barrel to over $100. Following the G7 announcement, Brent crude briefly dipped below the $100 threshold, but it rebounded to around $102 by Friday evening. Matt Smith, director of commodities research at Kpler, explained that the rebound was driven by escalating geopolitical tensions elsewhere, noting that "oil prices were selling off strongly due to the announcement of strategic stock releases in Europe, but they 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."
European nations had strongly opposed the U.S. threat to halt diesel exports, especially given the context of the U.S.-led war in the Middle East and curtailed energy supplies from Russia and China. Russia, another major global producer, has enforced its own diesel export ban following Ukrainian attacks on its refineries. G7 leaders reaffirmed during their meeting that they will maintain sanctions against Russia amid the ongoing war in Ukraine.
To further stabilize the market, G7 leaders agreed to coordinate refinery maintenance schedules to prevent multiple facilities from shutting down simultaneously. They also resolved to encourage nations with refining capacity to ramp up their production, focusing specifically on diesel. Diesel is notoriously harder to refine than petrol, and because of its indispensable role in the haulage and agricultural sectors, reducing overall demand is highly difficult. Consequently, rising diesel costs quickly translate into higher prices for essential goods, including food, which recently pushed UK diesel prices past the £2 per litre mark. While the G7 joint statement confirmed the 100 million barrel release of mixed crude and diesel, it remains unclear which specific partner countries will contribute stocks or how quickly the distribution will occur.
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