G7 leaders release up to 100m barrels of diesel and crude reserves

The Group of Seven (G7) industrialised nations announced on Friday that they would release up to 100 million barrels of diesel and crude oil over the next four months, with a front‑loaded diesel supply in the first 20 days. The decision, brokered by French President Emmanuel Macron after a video call with U.S. President Donald Trump, is aimed at easing the steep rise in fuel prices that has rattled households, businesses and the broader economy.

Fuel prices have surged since the United States and Israel launched an attack on Iran on 28 February, and the conflict has continued to tighten supply lines in the Middle East. Diesel, in particular, saw a sharp rise after the Russia‑Ukraine war escalated in July, with the U.S. Diesel price climbing 70 percent to $6.37 per gallon by the time of the G7 announcement. The record high of $6.52 per gallon was reached on 22 September. In Europe, diesel prices topped £2 per litre for the first time on the same day, with the average pump price at 200.01 p.

Media additions

G7 countries to release up to 100 million barrels of diesel and crude oil reserves

According to the G7 statement, the release will be coordinated by the International Energy Agency (IEA). The organisation will oversee the 100 million‑barrel disbursement, which could amount to roughly 830,000 barrels a day if spread evenly over four months. However, the amount that ultimately reaches consumers depends on refinery availability, logistics and the type of crude released. Andy Lipow, president of Lipow Oil Associates, noted that the release could temporarily reduce diesel prices by 25 cents per gallon, but would not increase refinery output.

The decision follows a week‑long pressure campaign by the Trump administration, which has warned that it would consider a U.S. Diesel export ban unless European allies released their stockpiles. The European Commission rejected the idea outright, stating that a ban would not benefit anyone. European Commission President Ursula von der Leyen welcomed the G7’s commitment to refrain from export restrictions and praised the solidarity between partners.

Trump took to Truth Social to celebrate the release, saying, “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately.” The statement came after an overnight call with Macron, who chaired the G7 video conference that set the release agenda.

In the United Kingdom, the G7’s release was seen as a relief for motorists and businesses. Transport Minister Keir Mather said he would reassure people that the UK has a diverse supply of diesel and that a freeze on fuel duty remains in place. The AA’s Edmund King praised the move as a step toward stabilising global fuel markets, while calling for a review of the proposed 5 p fuel duty increase slated for spring 2027.

Timeline of Events

• 28 Feb 2026 – U.S. And Israel attack Iran, sparking a surge in fuel prices.
• July 2026 – Escalation of the Russia‑Ukraine war intensifies diesel shortages.
• 24 Sep 2026 – U.S. Diesel price hits a record $6.52 per gallon.
• 2 Oct 2026 – G7 video conference chaired by Macron; Trump calls to urge release.
• 2 Oct 2026 – G7 announces coordinated release of 100 million barrels, front‑loaded diesel.
• 2 Oct 2026 – European Commission rejects potential U.S. Diesel export ban.

The G7’s decision comes at a crucial time for the Trump administration. With the mid‑term elections just a month away, the president faces low approval ratings and a growing perception that he is responsible for high energy costs. An AP‑NORC poll highlighted that a majority of U.S. Adults blame Trump for rising prices, and his own assessment of his economic performance was an “A‑plus.” Trump’s public statements emphasise that the war against Iran is necessary to prevent nuclear proliferation, but he also insists that prices will drop once the conflict ends.

From an economic perspective, the release could offer a temporary cushion for consumers and businesses. However, experts caution that the conversion of crude to diesel is not instantaneous. Refinery capacity is already at maximum in many European countries, and the additional crude will need to be processed before it reaches the pump. The IEA will monitor the release and report on its impact on prices and supply stability.

Looking ahead, the G7 will continue to monitor the situation. The IEA’s report on the implementation of the release will be published in the coming weeks, and the G7 may consider further measures if price volatility persists. Meanwhile, the U.S. Government’s stance on a diesel export ban remains under discussion, with European leaders warning that such a move would exacerbate market tensions.

For more on the economic implications of the G7 release, see our in‑depth coverage. If you want to track the potential impact on mortgage rates, read our latest analysis. And to understand the policy stance of the U.S. Treasury, read the full briefing.