Members of the Group of Seven (G7) have agreed to release up to 100 million barrels of strategic oil reserves in response to skyrocketing global energy costs linked to the ongoing conflict between the United States, Israel, and Iran. The decision was formalized during a meeting chaired by French President Emmanuel Macron, with the group confirming that the initiative will be coordinated through the International Energy Agency (IEA) over a four-month period.
A key component of the plan involves a significant, front-loaded release of diesel fuel by G7 members and their partners within the first 20 days. Officials stated they would convene shortly under the IEA framework to evaluate whether further diesel releases are necessary.
The announcement followed a social media post by U.S. President Donald Trump, who claimed that European nations had “just agreed to release a massive amount of their heavily stocked Diesel Oil.” Trump has been actively pressuring European leaders, particularly from Germany and France, to tap into their reserves to mitigate price hikes driven by disrupted shipping lanes through the Strait of Hormuz. This pressure has been met with skepticism by several European officials.
Data from Eurostat indicates that EU countries and the United Kingdom held approximately 52 million metric tonnes of gas, oil, and diesel stocks as of June 2026. Of this total, nearly 38 million tonnes were designated as emergency reserves. Under current EU regulations, member states are mandated to maintain emergency oil stocks sufficient to cover at least 90 days of net imports or 61 days of domestic consumption, whichever figure is higher.
Tensions escalated earlier when Trump suggested a ban on U.S. diesel exports to Europe if European nations failed to release their stockpiles. The European Union firmly rejected this threat on Friday. Domestic fuel prices in the United States have already reached historic highs; the national average for a gallon of diesel stood at $6.37 on Friday, following a record peak of $6.52 on September 22. U.S. diesel inventories dropped to a record low of 107.9 million barrels as of September 11, 2026, according to the Energy Information Administration.
The rising cost of diesel, a critical input for transportation, construction, and agriculture, has become a significant political liability for Trump ahead of the November midterm elections. His approval rating regarding the economy has declined sharply. The conflict, which Trump initiated alongside Israel on February 28, has had widespread knock-on effects on global supply chains.
In March, 32 IEA member nations previously agreed to unlock 400 million barrels of oil from their reserves, though officials have noted that the full implementation of that release has not yet been completed.
Skeptical about the timeline. Four months feels like an eternity when fuel costs are this volatile.
Hope this actually lowers prices. My diesel bill is killing my small business margins right now.