The Group of Seven has committed to releasing 100 million barrels of oil and diesel to relieve supply constraints that have driven fuel prices to record levels globally. The agreement emerged from a meeting of G7 leaders following pressure from the United States, which had threatened to restrict diesel exports unless other advanced economies increased their own market supplies.
French President Emmanuel Macron, who chaired the meeting, announced that member nations would discharge reserves of up to 100 million barrels over a four-month period under coordination by the International Energy Agency (IEA). The arrangement includes a frontloaded release of substantial diesel quantities within the first 20 days, with implementation beginning immediately.
The accord also commits G7 members to refrain from imposing export restrictions on energy products with one another, directly addressing President Donald Trump's earlier warning that he would ban American diesel exports if European nations failed to tap their strategic reserves.
On Friday, he said on social media: "Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately."
The G7 comprises the United States, United Kingdom, Canada, Japan, Germany, Italy, and France, with the European Union also participating in its deliberations.
Why Trump threatened the export ban
The American President had warned of restricting diesel shipments abroad to ease domestic price pressures ahead of November's midterm elections. His Treasury Secretary Scott Bessent contended that American farmers, truckers, and businesses were bearing an unfair share of the burden as global fuel costs climbed. Diesel carries particular weight in these sectors because it powers heavy transport and agricultural machinery, meaning price increases ripple through food production and supply chains.
Trump's threat reflected mounting concern in the United States about the economic impact of elevated energy costs. However, such a ban would have shifted the burden to other nations dependent on American diesel supplies, particularly those already struggling with constrained global markets.
How the crisis developed
Diesel shortages have intensified due to multiple geopolitical disruptions. Conflict in the Middle East has restricted the flow of crude oil and refined diesel onto world markets, while Russia—a major global producer—has implemented its own export ban on diesel following Ukrainian attacks on its refineries. The G7 reiterated its commitment to maintaining sanctions against Russia over its invasion of Ukraine, even as it seeks to address the fuel crisis.
The Strait of Hormuz, a critical chokepoint for global fuel traffic, has experienced disruption that has contributed to soaring prices, according to reporting on the region's energy situation.
This latest coordinated release builds on earlier emergency action. The IEA's March 2026 coordinated release involved 400 million barrels, described as the largest emergency oil-stock release in history, and members had released approximately two-thirds of those volumes by this week. The current 100 million barrels will fulfil those March 2026 commitments, taking into account volumes already released, though the statement does not specify the exact crude-versus-diesel breakdown or which partner countries will participate.
The UK's particular vulnerability
Britain faces acute exposure to diesel shortages because it imports over half its diesel supply, with 31 percent of those imports originating from the United States. Avoiding an American export ban offers significant relief to import-dependent nations like the UK, where pump prices reached £2 per litre for the first time on Friday.
The United States ranks among the world's leading diesel suppliers, with domestic refineries producing roughly four to five million barrels daily, according to the US Energy Information Administration. American consumers use approximately 3.6 million barrels of that output, leaving refiners to export the remaining 1.2 to 1.5 million barrels per day—making the country a vital source for global markets.
UK Foreign Secretary Ed Miliband, who represented Britain at the G7 meeting, stated that the measures would
"stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks".
What the G7 agreement includes
Beyond the barrel release, the G7 has committed to coordinating refinery maintenance schedules to prevent multiple facilities from shutting down simultaneously. The group is also encouraging nations with refining capacity to increase diesel production in particular, recognising that diesel is harder to refine than petrol and that demand cannot easily be reduced given its essential role in transport and agriculture.
In its joint statement, the G7 declared:
"We will implement our commitments with a coordinated release through the IEA of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days by G7 members and partners."
Macron emphasised that the coordinated action would
"bring down the prices of petroleum products, particularly diesel", and highlighted the agreement to avoid export restrictions.
Macron said "President Trump, in particular, was very clear on this point".
The price of Brent crude oil, the global benchmark, briefly dipped below $100 per barrel following the announcement but recovered to around $102 by Friday evening. Before the conflict in the Middle East intensified, crude had been trading near $73 per barrel.
What happens next
The IEA is expected to report within 20 days on implementation, the measures' effects, and recommendations for future responses and reserve replenishment. G7 leaders said they would meet through the IEA in the coming days to consider whether further diesel releases are needed.
The uncertainty surrounding which partner nations will release stocks and at what pace remains unresolved, leaving some questions about the agreement's full implementation. Nevertheless, the commitment represents a significant diplomatic achievement in preventing a trade conflict over energy exports that could have worsened the global fuel crisis.
Key Facts
- The G7 will release 100 million barrels of oil and diesel over four months, with a substantial diesel portion discharged within the first 20 days.
- The agreement commits G7 members to refrain from imposing export restrictions on energy products with one another, directly addressing Trump's threatened ban.
- The United States supplies 31 percent of the UK's diesel imports; avoiding an American export ban provides critical relief to import-dependent nations.
- Global diesel supplies have been constrained by Middle East conflict, Russian export restrictions following Ukrainian attacks on refineries, and disruption in the Strait of Hormuz.
- The IEA will report within 20 days on implementation and whether additional releases are necessary.
