The Group of Seven announced Friday that it will release 100 million barrels of oil and diesel over four months, beginning immediately, to address global supply shortages that have pushed prices to multiyear highs.
The coordinated action follows US President Donald Trump's threat to ban American diesel exports unless European nations tapped their own reserves. The G7 members include the US, UK, Canada, Japan, Germany, Italy and France, with EU representation.
Under the agreement, a "substantial" diesel release will occur within the first 20 days, with potential for additional releases as needed. Critically, the G7 committed to impose no export restrictions on energy products between member states.
Trump initially threatened the export ban early last week to protect American consumers ahead of November's midterm elections. His Treasury Secretary Scott Bessent argued US farmers, truckers and businesses "should not be left carrying the burden" as prices rose. On Friday, Trump reversed course on social media, calling Europe's decision "a great thing" and saying an export ban was "never really on the table."
French President Emmanuel Macron chaired the G7 meeting where leaders agreed to coordinate releases through the International Energy Agency. Macron said the move would "bring down the prices of petroleum products, particularly diesel." 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 100 million barrels comprise crude oil and diesel. The G7 also agreed to coordinate refinery maintenance schedules to avoid simultaneous shutdowns and to encourage increased diesel refining capacity where possible.
Brent crude briefly dropped below $100 a barrel after the announcement but recovered to around $102 by Friday evening, as renewed reports of Saudi Arabia planning military action in Yemen offset gains from the reserve release news.
The accord offers particular relief to diesel-dependent economies. The UK imports over half its diesel supply, with 31 percent sourced from the US. Global diesel supplies have tightened due to Middle East conflict disruptions, Russian export restrictions following Ukrainian strikes on refineries, and reduced Chinese production. The US currently exports 1.2 to 1.5 million barrels of diesel daily from domestic refineries that produce roughly 4 to 5 million barrels per day total.