G7 Agrees 100 Million Barrel Fuel Reserve Release
G7 countries have agreed to release 100 million barrels of diesel and crude oil from emergency reserves after pressure from the United States, as governments move to contain soaring fuel prices and supply disruption caused by the Iran war.
G7 Agrees 100 Million Barrel Emergency Release
The coordinated release will be implemented through the International Energy Agency and is expected to begin immediately, lasting over four months.
A substantial quantity of diesel is due to enter the market within 20 days. The agreement does not specify how much of the 100 million barrels will consist of diesel, crude oil or other petroleum products.
The move follows an earlier 400 million barrel emergency stock release agreed in March after the Iran war disrupted global energy supplies.
Europe Responds After US Pressure on Diesel Supplies
European governments had been discussing a plan involving the release of 50 million barrels of diesel, alongside another 50 million barrels of crude oil from wider IEA reserves.
The talks followed pressure from the Trump administration, which had considered restricting US diesel exports if European countries did not draw down their own emergency stocks.
President Donald Trump later said Washington would not impose a diesel export ban after Europe agreed to contribute to the coordinated release.
Diesel Prices Fall After G7 Decision
The G7 also pledged to avoid imposing energy export restrictions among member countries, reducing concerns over further supply fragmentation.
Europe has become increasingly dependent on US diesel imports after disruptions to Gulf supplies intensified during the Iran conflict.
Fuel markets reacted quickly to the announcement, with US diesel futures falling more than 3% and benchmark European diesel prices dropping sharply.
The release is intended to ease pressure on consumers, transport operators and industries heavily dependent on diesel.
