Leaders of G7 nations and their partners have agreed to release up to 100 million barrels of emergency diesel and crude oil stockpiles to curb soaring fuel prices. The coordinated drawdown, which will be managed by the International Energy Agency, is intended to ease pressure on households and economies.
The release will take place over four months, starting immediately. French President Emmanuel Macron stated that the process will be frontloaded, with a substantial release of diesel occurring within the first 20 days. The current global supply crunch and rising prices have been driven by fighting in the Middle East between the U.S. and Iran.
The agreement follows increased pressure from Washington and the Trump administration. President Donald Trump had threatened a ban on U.S. diesel exports to push Europe to release its strategic reserves. The move comes as Trump and the Republican Party face pressure to address fuel costs ahead of the November 3 midterm elections.
President Trump hailed the G7's decision and announced that the United States will not impose the threatened diesel export ban. This coordinated action is aimed at heading off further price spikes and ending the threat of a U.S. embargo.