G7 nations agreed on Friday to release 100 million barrels of diesel and crude oil from their strategic reserves over four months, yielding to sustained pressure from US President Donald Trump and averting a threatened ban on American diesel exports. The release, coordinated by the International Energy Agency (IEA), begins immediately and includes a substantial drawdown of diesel stocks within the first 20 days — a deal that hands the White House a significant political win weeks ahead of the US midterm elections.
The announcement came first from Trump himself. 'Europe has just agreed to release a large amount of their diesel stockpiles,' the President wrote on Truth Social. 'The process will begin immediately.'
G7 leaders confirmed the agreement shortly afterwards in a joint communiqué issued from the Élysée Palace. They committed to a coordinated release of 100 million barrels through the IEA, to be carried out immediately and over a four-month period, with a substantial diesel component front-loaded into the first 20 days. The leaders also pledged to refrain from imposing restrictions on energy exports and urged other countries to do the same.
The deal was the product of an intensive round of diplomacy. According to a White House official, Trump spoke with French President Emmanuel Macron on Thursday evening and convened a video call with G7 leaders on Friday morning to negotiate the release. During the bilateral discussion, Macron proposed the release of approximately 100 million barrels of diesel and crude oil as a way to deflect the US threat. As the rotating G7 chair, Macron led the leaders' video conference and announced the resulting agreement.
The decision follows a week of heavy pressure from the Trump administration on European allies, particularly Germany and France, which together hold a large portion of the European Union's diesel reserves. Washington had accused Europe of dragging its feet on a commitment made in March to deploy its energy stocks. On Thursday, Treasury Secretary Scott Bessent called on Europe to use those stocks 'immediately.' The White House had demanded a release of at least 100 million barrels, threatening to ban US diesel exports if allies failed to comply. According to Reuters, the threat was aimed specifically at France and Germany.
The joint communiqué does not specify what portion of the 100 million barrels will be diesel, nor how much each country will contribute. It states only that volumes will take into account commitments already fulfilled under the March agreement, when IEA member countries approved a release of 400 million barrels of crude oil.
According to Andy Lipow, president of Lipow Oil Associates, a release of 100 million barrels of diesel over four months would in practical terms replace Russian exports that have been largely disrupted since Ukrainian drone strikes severely curtailed Russia's refining capacity.
Market reaction preceded the formal announcement. Diesel prices fell 6% on reports that the European Union might release 50 million barrels from its reserves. According to the Irish Times, the full release could reduce prices at the pump by approximately eight euro cents.
The world is grappling with a fuel supply crisis driven by Ukrainian attacks on Russian refineries and supply disruptions in the Middle East stemming from the war with Iran. In the United States, diesel prices recently hit record highs.
For Trump, the agreement arrives at a politically critical moment. The President and the Republican Party are under intense pressure to curb rising fuel costs ahead of November's midterm elections, which will determine control of Congress. Trump's approval ratings have been sliding as the conflict with Iran and ongoing trade disputes push up the price of oil and other goods.
The threat to ban US diesel exports — which served as the principal lever in the negotiations — appears to have receded following the agreement. After the announcement, Trump appeared to step back from the idea, citing the adverse effect such a ban would have on domestic petrol prices.
The coordinated IEA release marks one of the largest emergency stock deployments since the agency's 400-million-barrel drawdown announced in March, and underscores how geopolitical tensions around the Strait of Hormuz and the Russia-Ukraine conflict continue to reverberate through global energy markets.
The Élysée communiqué framed the decision as a collective effort to stabilise global energy markets and protect households and businesses from price spikes, though analysts noted the timing aligned closely with Washington's domestic political calendar.
Source: Mercado / Original article: https://mercado.co.ao/g7-liberta-100-milhoes-de-barris-de-reservas-apos-pressao-de-trump/
