The Group of Seven nations has agreed to release up to 100 million barrels of oil over four months in response to rising global fuel prices. This move comes after the United States and Israel launched strikes on Iran on February 28 which sent energy prices sharply higher. The conflict disrupted fuel supplies from the Middle East and placed heavy pressure on global diesel markets.
The G7’s decision follows a previous release of 400 million barrels approved by members of the International Energy Agency in March. That earlier release was the largest emergency stock action in the agency’s history and included both crude oil and refined petroleum products.
Prices have remained high since the conflict in Iran began.
Diesel supplies have faced additional pressure from Russia. Ukrainian attacks damaged Russian refineries during the summer and Moscow later restricted diesel exports to protect domestic supplies. Russia extended its diesel export ban through the end of October.
Treasury Secretary Scott Bessent warned that American farmers; truckers; and businesses should not bear the full cost of a global diesel shortage alone. He called on European countries to speed up earlier commitments and make more emergency supplies available.
The issue has also become politically important ahead of the November 3 U.S. midterm elections.
A September NBC News poll found that 56% of registered voters disapproved of President Trump’s overall job performance. The same survey found that 55% said his policies had hurt economic conditions while 26% said they had helped. Inflation and the economy remained major concerns for voters.
President Trump had previously suggested imposing a diesel export ban which raised concerns in other countries. The United States exports large amounts of diesel and Europe has become increasingly dependent on those supplies. Analysts warned that an export ban could reduce European supplies and push prices higher outside the United States.
The G7 agreement includes a pledge to avoid restrictions on energy exports among member countries. Trump said Friday that the United States would not impose the diesel export ban after the reserve agreement was reached.
French President Emmanuel Macron said the coordinated effort was intended to lower petroleum product prices with a particular focus on diesel. The G7 said the release would begin immediately and continue over four months. A substantial amount of diesel is expected to reach the market during the first 20 days.
The release will include both crude oil and diesel in the total amount of 100 million barrels.
The exact amount supplied by each country has not yet been announced. The G7 also has not provided a complete breakdown showing how much of the release will be diesel and how much will be crude oil. Officials will continue discussions through the International Energy Agency.
There is also uncertainty about how much of the new commitment represents additional oil beyond the March agreement. Reuters reported that about two-thirds of the earlier 400 million-barrel commitment had already been released. Some of the latest action could therefore involve earlier commitments that had not yet reached the market.
Oil markets reacted quickly to reports of the agreement. Brent crude settled Friday at $102.25 per barrel after moving sharply during the day. U.S. diesel and European diesel futures also fell as traders reacted to the prospect of additional supplies.
Before the military action in Iran Brent crude settled at $72.48 per barrel on February 27.
The G7’s decision is meant to stabilize global energy markets and reduce pressure on consumers. The International Energy Agency has said it is prepared to consider further releases if market conditions require additional action.