European nations objected to US threats to block American diesel exports, which prompted the G7 to agree on releasing 100 million barrels of oil and diesel. This coordinated release is being managed through the International Energy Agency (IEA). The decision came after President Donald Trump threatened to ban diesel exports from the US. That move would have lowered prices for American consumers before November’s midterm elections, but it would also have raised prices in other parts of the world.
The agreement includes a “substantial release” of diesel in the coming days. In a joint statement, the G7 said member countries would “refrain from export restrictions on energy and energy products” on one another. The group includes the US, UK, Canada, Japan, Germany, Italy and France, with the EU also represented.
Trump’s Warning
Trump warned on social media that “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately.” His Treasury Secretary, Scott Bessent, argued US farmers, truckers and businesses “should not be left carrying the burden” as prices soar.
President Emmanuel Macron of France reported that the group agreed to release stored oil “up to 100 million barrels”, working through the IEA, with deliveries beginning within four months. The joint statement confirms the release will begin at once across four months, with G7 members and partners sending out a large amount of diesel within the first 20 days.
The Price Picture
Brent crude oil, which serves as a global benchmark, fell below $100 a barrel at one point on Friday evening before recovering to about $102. The price was trading around $73 before the United States and Israel attacked Iran.
Refining diesel is more demanding than refining petrol, and cutting back on its use is particularly hard because haulage and agriculture depend heavily on it. This means that any disruption to supply hits transport and farming especially hard.
Who Pushed Back
During the US-led conflict in the Middle East, European nations resisted American pressure to limit their access to American diesel when supplies from Russia and China fell short. The United States ranks among the world’s top diesel exporters, with its own refineries churning out about four to five million barrels per day, according to the US Energy Information Administration (EIA).
Americans consume about 3.6 million barrels; refiners export the remaining 1.2 to 1.5 million barrels per day. The US provides 31% of the UK’s diesel imports, with over half of the UK’s diesel coming from abroad.
After attacks on its refineries, Russia has put its own diesel export ban into place, which is further restricting supply.
The G7 Plan
To keep diesel flowing, the G7 leaders want to line up maintenance work across refineries so that no two plants go down at once. They are also pushing nations with extra refining power to increase their output.
Amid Russia’s continuing war in Ukraine, the leaders made clear that sanctions against it would remain in place.
What the Release Covers
The 100 million barrels will comprise a mix of diesel and crude oil. The joint statement said the release would “begin immediately over four months.”
The identity of the partner nations releasing their stockpiles has yet to be determined, and neither has the pace at which they will do so.
The Political Context
Rather than severing their own supplies, the arrangement keeps trade flowing between advanced economies. It stands as a gain for all parties concerned.
To prevent several refineries from closing simultaneously, the G7 leaders plan to synchronize their maintenance timetables. They also intend to urge nations with spare refining capacity to increase production of diesel fuel.
Key Facts Box
- Release: 100 million barrels of oil and diesel
- Diesel share: Frontloaded substantial release within the first 20 days
- Timing: Start immediately, over four months
- Brent crude: Dropped below $100, rose to $102; pre-war traded at $73
- US production: Roughly 4-5 million barrels daily
- US exports: 1.2-1.5 million barrels per day
- UK imports: Over half of diesel, 31% from the US
- Russian export ban: In place following attacks on refineries
Schedule Table
| Milestone | Timing |
|---|---|
| Diesel release begins | Immediately |
| First 20 days | Frontloaded substantial diesel |
| Full 100 million barrels | Four months |
| Brent crude low point | Briefly below $100 |
Markets have been given some breathing room thanks to the deal. Rather than imposing an export ban, the G7 opted to release stocks, which keeps commerce flowing between the world’s leading economies instead of severing their own supply lines.
Source material: “G7 to release 100 million barrels of oil and diesel after Trump export ban threat,” the BBC.
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