The Group of Seven (G7) has agreed to release up to 100 million barrels of oil and diesel over four months to ease supply strains that have pushed fuel prices sharply higher. The coordinated drawdown, to be managed through the International Energy Agency (IEA), will include a significant, frontloaded diesel release during the first 20 days, G7 leaders said, though details on which countries will supply how much are still being finalized.
The move followed mounting global pressure as diesel costs surged. Diesel is crucial for trucking and farming, so rising prices quickly ripple into higher costs for food and logistics. The G7—comprising the US, UK, Canada, Japan, Germany, Italy and France, with the EU also represented—stressed that members and partners would refrain from imposing export restrictions on energy products against one another, a pledge aimed at keeping markets open while stabilizing supply.
The decision comes amid tense international dynamics. US President Donald Trump had publicly threatened a US diesel export ban to protect American consumers ahead of midterm elections, but European leaders resisted the idea, warning it would merely shift the burden onto other markets. Following the G7 meeting, French President Emmanuel Macron said the bloc had agreed to the coordinated release and emphasized the commitment not to pursue export bans. Trump later downplayed the export-ban threat, saying it was never seriously on the table.
Under the G7 plan, the 100 million barrels will be a mix of crude oil and refined diesel. Global benchmark Brent crude fell briefly below $100 a barrel after the announcement but recovered to around $102. Prices had been substantially higher than before the escalation of hostilities in the Middle East, when Brent traded near $73. Market watchers caution that geopolitical developments — including strikes tied to the Saudi-Houthi conflict in Yemen and rumors of further military action — continue to threaten price stability.
European countries in particular welcomed the compromise. The UK, where pump prices recently surpassed £2 per litre for diesel, is highly reliant on imports for its diesel supply; over half of the country’s diesel is imported and about 31% of those imports historically came from the US. The United States is a major global diesel exporter: of the roughly four to five million barrels per day produced by US refineries, Americans consume about 3.6 million, leaving roughly 1.2 to 1.5 million barrels a day available for export.
Supply constraints are not solely the result of Middle East tensions. Russia has also curtailed diesel exports following attacks on its refining infrastructure, tightening global availability further. The G7 reiterated that while acting to stabilize markets, it would maintain sanctions on Russia in response to the war in Ukraine.
In addition to the strategic stock release, G7 leaders agreed to coordinate refinery maintenance schedules so multiple plants are not taken offline simultaneously — a measure designed to avoid supply hiccups — and encouraged countries capable of expanding diesel refining to do so. These steps aim to bolster short-term availability and lessen the chance of abrupt supply shocks.
Analysts have noted, however, that diesel is more complex and costly to refine than petrol, and demand is relatively inelastic because of its essential role in transport and agriculture. That makes it difficult to quickly reduce consumption to match supply shortfalls, reinforcing the importance of targeted releases and refinery management to avert prolonged price spikes.
The G7’s pledge to channel a substantial diesel release immediately underscores the urgency of the situation and the political sensitivity of fuel prices in many member countries. While the coordinated drawdown should provide temporary relief and help calm markets, the ultimate effect on prices will depend on how quickly partner countries can deliver the promised barrels, the ongoing course of geopolitical events, and the capacity of refineries to increase output without creating downstream disruptions.
Short-term market reactions will likely continue to be volatile as traders weigh the IEA-coordinated intervention against fresh conflict-related risks. For consumers and industries reliant on diesel, the G7 package represents a concerted attempt to stabilize supply and shield households and businesses from the worst impacts of soaring energy costs — at least in the near term.
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