G7 agrees 100m-barrel oil and diesel release over 4 months
US President Donald Trump rules out a diesel export ban as G7 members pledge to avoid energy export restrictions among themselves
- The Group of Seven (G7) has agreed to release 100 million barrels of crude oil and diesel from emergency reserves to combat soaring fuel prices.
- The release will be coordinated by the International Energy Agency (IEA) and will take place over a four-month period, starting immediately.
- The agreement came after pressure from the U.S., which subsequently ruled out a threatened ban on American diesel exports to Europe.
- Alongside the stock release, G7 members also pledged to refrain from restricting energy exports to one another.
The Group of Seven (G7) agreed on Friday (October 2, 2026) to release 100 million barrels of diesel and crude oil from emergency reserves following pressure from US President Donald Trump to ease soaring fuel prices. G7 members also pledged to refrain from restricting energy exports to one another. Trump ruled out a US diesel export ban after his administration had warned that such a measure could follow unless Europe released emergency stocks.
G7 sets four-month release without specifying country contributions
The G7 said releases would begin immediately and continue over four months, with members and partners supplying a substantial amount of diesel within the first 20 days. The joint statement did not identify participating countries or specify the quantities of crude oil, diesel and other products involved.
“Taking into account commitments that have already been fulfilled, we will implement our commitments with a coordinated release through the IEA of 100 million barrels,” the G7 statement said, referring to the International Energy Agency.
The Iran war had already prompted the largest emergency stock release on record in March, when the International Energy Agency (IEA) coordinated an agreement covering 400 million barrels.
IEA executive director Fatih Birol said during the week that members had released about two-thirds of the volume promised in March. How much of the latest 100-million-barrel agreement would come from the outstanding March commitments remained unclear.
Further diesel releases remain possible. “We will convene in the context of the IEA in the coming days to discuss the possibility of additional diesel releases as necessary,” the G7 statement said.
Trump rules out diesel export ban after pressure on Europe
The Trump administration had pressed the European Union (EU) to release emergency diesel inventories, warning that inaction could trigger a US export ban. Europe has increased purchases of US diesel this year as the Iran war disrupted supplies from Gulf producers, leaving the bloc exposed to potentially severe supply losses and economic costs if American exports stopped.
Speaking at the White House before leaving for Alabama, Trump said the United States would not impose a diesel export ban. Trump maintained that the proposal had never really been on the table, despite repeatedly saying over the previous two weeks that it was under consideration and that he supported it.
“Europe has a lot of diesel, and they're going to be making a major world contribution, and so are we. And we're not going to be doing the export ban. We're going to be doing what we're supposed to do,” Trump said.
Trump also announced Europe’s decision on Truth Social: “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately.”
The G7’s commitment to avoid energy export restrictions between members could ease pressure on the Trump administration to impose a ban. Analysts at Energy Aspects questioned how firmly the stock-release announcement bound participating governments.
“This is a political statement rather than a specific and binding commitment with the large headline number intended to persuade President Trump not to impose a diesel export ban,” Energy Aspects analysts said in a note.
White House prepares diesel measures ahead of midterm elections
Trump is trying to lower fuel prices before November’s midterm elections as voters express concern about living costs. A Reuters/Ipsos poll conducted from September 17–20 put Trump’s approval rating at a career-low 32%, with only 17% of Americans approving of his handling of the cost of living.
Lower energy prices have become a central administration priority as the White House tries to cushion consumers and diesel-dependent industries, including trucking and farming, from the Iran war and high diesel costs.
The White House is preparing an executive order aimed at record-high US diesel prices that could be announced as early as next week, according to two people familiar with the process.
The proposed order is expected to expand the use of tax-exempt red-dyed diesel and introduce other tax changes to reduce fuel costs, the two people said. Details remain under discussion and could change.
Diesel futures fall after stock-release discussions
US diesel futures fell 3.25% to US$4.49 a gallon following reports of the stock-release discussions. Benchmark European diesel futures dropped roughly US$83 per tonne, or 5.75%, according to London Stock Exchange Group (LSEG) data.
EU governments had discussed a French proposal on Friday under which European countries would release 50 million barrels of diesel and IEA members would release 50 million barrels of crude oil, three sources familiar with the discussions said. The G7’s final statement did not confirm that split.
A diesel release of 50 million barrels would represent approximately 17% of the EU’s emergency diesel and gasoil stocks, Eurostat data showed, or about 3% of the bloc’s annual consumption.
