G7 members will release 100 million barrels of diesel after US threatens export ban

G7 countries agreed Friday to release 100 million barrels of diesel and crude oil from their reserves over four months, leaders said, agreeing to "refrain from export restrictions on energy" and urging others to do the same. 

Washington has been pressuring Europe to tap its strategic reserves in a bid to bring down fuel prices, with US President Donald Trump threatening to impose a ban on diesel exports.

The announcement came after G7 leaders held talks to coordinate action on fuel prices.

The seven countries agreed to "a coordinated release through the IEA (International Energy Agency) of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days", they said in a joint statement released by French President Emmanuel Macron's office.

Read moreEuropean drivers choke on rising diesel prices due to Iran conflict

The leaders also said that there would be no ban on diesel exports between them.

"We reaffirm our commitment to refrain from export restrictions on energy and energy products between G7 countries and call on all producers to refrain from imposing bans that could exacerbate market tensions," the leaders said.

"Our citizens' concerns about energy prices remain a top priority," they added.

"We will monitor developments closely and stand ready to adjust measures as needed."

Macron had convened a video call of G7 leaders – a group comprising also Britain, Japan, Canada, Germany and Italy – to discuss joint action after he spoke with Trump.

Trump had floated the possibility of banning US exports of diesel, which is used in trucks and other hauling vehicles – an alarming prospect for the EU, which relies heavily on fossil fuel imports. The US president on Friday hailed the G7 decision as "a great thing", adding that a diesel export ban "was never really on the table".

EU trade chief Maros Sefcovic told reporters Thursday on the sidelines of the G20 trade ministers gathering in Milwaukee that such a ban would have “dramatic consequences for our economic performance".

Reports said the Trump administration wants France and Germany in particular to tap their stockpiles of diesel to try to curb prices.

Trump sparks debate over diesel export ban

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The EU pushed back hard Friday against the US threat.

“We fully reject any ban on diesel. A ban would not be beneficial to anyone. It would undermine our trust in the United States as a reliable partner,” European Commission spokeswoman Anna-Kaisa Itkonen said.

The 27-nation bloc was ready to work with the IEA on the possible release of fuel reserves to contain prices, she added, following crisis talks between member states and the commission to forge a unified response.

The flurry of diplomatic activity came a day after US Treasury Secretary Scott Bessent cranked up the pressure on European nations.

“Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions,” Bessent posted on social media.

“American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage,” he wrote.

Earlier this week, IEA executive director Fatih Birol said European nations were yet to release part of the stocks they had agreed to in an earlier bid to ease prices in March.

“A big chunk of the stocks have been released, but still some remain, both in terms of crude oil and products,” Birol told reporters Tuesday after a meeting of EU energy ministers in Dublin.

‘Dramatic consequences’

The 32 members of the IEA agreed last March to unlock 400 million barrels of oil from reserves, their largest release ever.

About a third was yet to come to market, Birol said, adding that further releases were possible with 80 percent of overall IEA stocks “still in our pocket”.

Diesel prices in the United States and Europe have hit record highs due to the US-Israeli was on Iran, with Ukrainian attacks on Russian energy infrastructure also blamed for pushing up prices.

The issue has emerged as a major drag for Trump’s Republican Party in the coming midterm elections, in which it risks losing control of Congress.

Average US diesel prices have surged more than 70 percent to $6.39 a gallon since the start of the Iran war, according to the American Automobile Association.

(FRANCE 24 with AFP)