President Donald Trump stated on Thursday that the United States could request European nations to release diesel reserves, a move aimed at curbing sharply rising fuel costs linked to the ongoing war with Iran.
The announcement followed comments by Treasury Secretary Scott Bessent, who urged European countries to immediately access their stockpiles. In a social media post, Bessent emphasized that US partners should accelerate existing commitments and make additional supplies available to address current market disruptions.
US diesel prices recently reached a record high of $6.53 per gallon, according to data from the European Commission. The report also indicated that twelve EU member states, including Italy, Belgium, Romania, and Poland, have recorded new all-time highs in fuel costs.
US Trade Representative Jamieson Greer expressed confidence that France, Germany, and Italy would seek a cooperative approach with the United States to increase diesel availability in the market. Meanwhile, US Energy Secretary Chris Wright stated he was “highly confident” that Europe could assist in easing soaring global prices by releasing emergency inventories.
The spike in domestic fuel costs has prompted the Trump administration and Republican lawmakers to consider restricting US diesel exports ahead of the midterm elections. France and Germany hold more than a third of the EU’s strategic diesel reserves, according to Reuters.
EU Trade Chief Maros Sefcovic described a potential US ban on diesel exports as “unexpected,” warning that such a measure would have detrimental effects on Europe’s economy. European capitals spent Thursday coordinating their response and potential diesel measures.
France and Germany hold the bulk of reserves, but this pressure puts them in a tough spot with their voters.
Six and a half dollars a gallon! I can barely afford groceries as it is, never mind commuting to work.
Interesting that EU trade officials called a potential US ban ‘unexpected.’ Coordination is clearly fragile right now.
Italy is already hitting record highs. Asking us to release reserves while our own costs soar feels rather greedy.
Why should Europe bail out US gas prices? Seems like standard transactional diplomacy from the new administration.