Key facts
- Europe will release 100 million barrels of diesel and crude oil from strategic reserves.
- The US threatened Europe with an export ban on diesel if reserves were not released.
- Diesel prices have hit record highs due to the war in Iran and Russia's war in Ukraine.
- A European diplomat characterized the US demands as "blackmail."
- The G7 countries will implement the release starting immediately over four months.
European nations have agreed to release 100 million barrels of diesel and crude oil from their strategic reserves over the next four months, following intense pressure from the Trump administration. The US had threatened Europe with an export ban on diesel if they did not tap into their reserves to help cool surging global fuel prices.
Senior White House officials reportedly led a campaign to convince European governments to open their spigots on strategic reserves. This pressure ultimately led to the G7 countries announcing the coordinated release. US President Donald Trump announced on Friday that Europe had agreed to release "a massive amount of their heavily stocked diesel oil," with the process beginning immediately.
Diesel prices have reached record highs, exacerbated by the war in Iran and Russia's ongoing conflict in Ukraine, both of which have significantly damaged fuel refineries in the Middle East and Europe. One European diplomat described the White House's demands, coupled with the threat of a US export ban, as "blackmail."
The US is the world's largest exporter of diesel, and a ban on its exports would severely impact Europe, which is a net importer of the fuel. Tapping into emergency reserves, however, carries the risk of leaving Europe vulnerable should supply disruptions continue. US Energy Secretary Chris Wright had urged European countries to release diesel from stockpiles, emphasizing the need to bring more fuel to the market ahead of winter heating season.