The Group of Seven (G7) nations announced Friday that they will release 100 million barrels of oil and refined petroleum products over the coming months, beginning with substantial diesel supplies, as governments seek to ease record fuel prices amid the ongoing Iran war.
The agreement, announced following a virtual meeting chaired by French President Emmanuel Macron, calls for an immediate release of diesel reserves, with significant quantities expected to enter the market within the next 20 days. The remaining supplies will be distributed over four months.
U.S. President Donald Trump confirmed the decision on social media, saying the diesel release would begin immediately as his administration faces mounting pressure over rising energy costs ahead of the November 3 midterm elections.
According to AAA, the average price of diesel in the United States reached US$6.37 per gallon Friday, after climbing to a record US$6.52 on September 22. European diesel prices have also reached historic highs as the eight-month-long conflict involving Iran continues to disrupt global energy supplies.
The latest announcement follows a March commitment by International Energy Agency member countries to release 426 million barrels of oil and petroleum products to stabilize global markets. European Union countries pledged approximately 92 million barrels, with a significant portion consisting of refined fuels such as diesel.
Macron said the coordinated release is intended to increase market liquidity and reduce prices for consumers and businesses.
Several factors have contributed to the global diesel shortage, including higher crude oil prices, disruptions to Persian Gulf energy exports and Russia’s decision to restrict fuel exports following Ukrainian drone attacks on its refineries.
Although European countries do not import Russian diesel, the export restrictions have forced other buyers, including Turkey and Latin American nations, to compete with Europe for alternative supplies.
Meanwhile, damage to energy infrastructure and restrictions on shipping routes in the Persian Gulf have further reduced the availability of refined petroleum products.
The G7, comprising Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, along with European Union representation, also agreed not to restrict energy exports between member countries.
The commitment comes amid calls from some U.S. Republicans for Trump to temporarily ban American diesel exports to increase domestic supplies and lower prices.
However, energy analysts have warned that such restrictions could eventually reduce gasoline availability because diesel and gasoline production are closely linked through refinery operations.
According to French officials, Trump and Macron discussed rising fuel costs and petroleum availability ahead of Friday’s G7 meeting. Trump also participated in the leaders’ discussions on releasing European diesel reserves.
The coordinated action comes as rising energy costs and broader inflationary pressures become prominent issues in the United States ahead of the midterm elections.
A recent AP-NORC poll found that Trump’s approval rating on the economy had fallen to a new low, with the Iran war and ongoing trade disputes contributing to higher prices for fuel and other consumer goods.
Trump launched a 32-day series of campaign rallies Thursday aimed at supporting Republican candidates as the party seeks to retain control of both chambers of Congress in November.
The G7’s emergency release is intended to provide short-term relief to global energy markets, although its effectiveness will depend on the pace of distribution and the continuing impact of the Iran conflict on international oil supplies.
