The Group of Seven has committed to releasing 100 million barrels of oil and diesel over four months to address global supply shortages and price spikes, according to a joint statement from G7 leaders chaired by French President Emmanuel Macron.
The announcement follows US President Donald Trump's threat to ban American diesel exports if European nations did not tap their own reserves. Trump had warned that a ban would ease pressure on US consumers ahead of November's midterm elections but would push prices higher elsewhere.
The G7 release will include a substantial diesel shipment within 20 days, coordinated through the International Energy Agency. G7 members also agreed to forgo export restrictions on energy products among themselves and to coordinate refinery maintenance schedules to prevent simultaneous shutdowns.
Trump initially backed the export ban early last week and was still considering it Thursday. By Friday, he reversed course. Speaking at the White House, he said an export ban "was never really on the table" and praised Europe's decision to release reserves. "Europe has a lot of diesel and they're going to be making a major world contribution, and so are we," Trump said.
UK Foreign Secretary Ed Miliband said the measures would "stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks." The UK imports over half its diesel, with 31 percent arriving from the US, making an American export ban particularly damaging to British energy security.
Diesel supplies have tightened sharply due to Middle East conflict, reduced Russian exports following Ukraine's refinery attacks, and constrained Chinese supplies. The US refines roughly 4 to 5 million barrels daily, consumes 3.6 million, and exports the remaining 1.2 to 1.5 million barrels per day globally. Diesel is harder to refine than petrol and essential to haulage and agriculture, making price increases feed directly into food costs.
Brent crude oil briefly dropped below $100 a barrel on the announcement but rose back to around $102 by Friday evening after reports of renewed Saudi Arabia strikes against Houthis in Yemen threatened shipping routes. G7 leaders said they would maintain sanctions against Russia despite its ongoing war in Ukraine.