The G7 has committed to releasing 100 million barrels of oil and diesel over four months to address global supply shortages and rising prices, following US President Donald Trump's threat to ban American diesel exports.
The announcement came after a meeting chaired by French President Emmanuel Macron. G7 members include the US, UK, Canada, Japan, Germany, Italy, France, and the EU. The release will begin immediately and include a "substantial release" of diesel within the first 20 days, with "additional diesel releases as necessary," according to a joint statement from the group.
The move avoids a US export ban that Trump had threatened to impose if European countries did not release more of their own fuel stocks. Trump's Treasury Secretary Scott Bessent argued that US farmers, truckers and businesses "should not be left carrying the burden" as prices soared. Trump later said on social media that the ban was "never really on the table" and praised Europe for agreeing to release fuel from reserves.
The G7 statement also commits members to avoiding export restrictions on energy products between themselves and to coordinate refinery maintenance schedules to prevent multiple facilities from shutting down simultaneously. Leaders encouraged countries with the capacity to increase diesel refining, particularly.
Diesel prices have risen sharply due to multiple supply constraints. The US-led war in the Middle East has restricted crude oil and refined diesel flows. Russia, a major producer, implemented its own diesel export ban following attacks on its refineries by Ukraine. The UK, which imports over half its diesel supply with 31 percent coming from the US, saw pump prices exceed £2 per litre for the first time on Friday.
Global benchmark Brent crude briefly dropped below $100 a barrel following the announcement but rose back to approximately $102 by Friday evening. Oil analyst Matt Smith at Kpler attributed the reversal to reports of planned Saudi military operations in Yemen, which threaten shipping routes.
The release will coordinate through the International Energy Agency. The 100 million barrels comprise both diesel and crude oil. UK Foreign Secretary Ed Miliband said the measures would "stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks."