G-7 Announces Major Oil Reserve Release to Stabilize Fuel Prices
G-7 releases up to 100M barrels of oil to ease rising fuel costs. Diesel prices surge after Iran conflict and Ukraine war escalation.
POLICY WIRE — Paris, France — The Group of Seven nations announced plans to release tens of millions of barrels of diesel and crude oil in an effort to stabilize rising fuel prices, marking another global response to the energy crisis.
The decision was made during a videoconference led by French President Emmanuel Macron, with U.S. President Donald Trump claiming that Europe had agreed to release a large quantity of its diesel reserves. Trump emphasized that the process would begin immediately, sharing the news on his social media platform.
Diesel prices have climbed sharply since the U.S. and Israel launched attacks against Iran in February, with a renewed spike this summer following the intensification of the Russia-Ukraine conflict. In the U.S., the average cost of diesel has risen 70% since late February, reaching $6.37 per gallon. The G-7’s plan includes releasing up to 100 million barrels over four months, with a significant portion of diesel expected within the first 20 days.
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Earlier this year, members of the International Energy Agency approved the release of 400 million barrels of crude oil, which helped ease some supply concerns but failed to halt rising prices. Brent crude oil, which dropped 3% in anticipation of the G-7 announcement, still remains above $100 per barrel, having increased more than 60% since the start of the year.
The agreement comes amid pressure from the Trump administration on European allies, particularly Germany and France, which hold a large portion of the EU’s diesel reserves. Treasury Secretary Scott Bessent criticized the global diesel shortage, stating that American farmers, truckers, and businesses should not bear the burden alone. Meanwhile, Trump is considering a potential ban on U.S. diesel exports, which could significantly impact European and British markets.
The European Union has already rejected any proposal for a diesel export ban, with a Commission spokesperson stating that such a move would be detrimental to all parties involved.
Reporting by Policy-Wire (PW)
