The Group of Seven (G7) leading industrial democracies agreed on Friday to a coordinated release of 100 million barrels of crude oil and oil products, including diesel, from strategic reserves. The move, made in coordination with the International Energy Agency (IEA), is meant to ease supply concerns that have pushed fuel prices sharply higher. Oil prices fell on the news: Brent crude, the international benchmark, briefly dipped below $100 per barrel before settling around $102, while US crude prices dropped by as much as five per cent.
According to a statement issued by the office of French President Emmanuel Macron, the barrels will be released over four months, with a substantial share of diesel "frontloaded" within the first 20 days. The G7 also said there would be no ban on diesel exports between the United States and Europe. Washington had earlier pressed European countries to tap their strategic diesel stocks or face such a ban, a threat Donald Trump later said would not be imposed.
The announcement follows a separate IEA update on Saturday. The agency, which counts 32 member countries including all G7 nations, said about 325 million barrels had so far been released from the 400 million barrels pledged in a collective action announced on 11 March. That is over 80 per cent of the original commitment, leaving roughly 75 million barrels still to come. The G7 statement did not make clear whether the new 100 million barrels include that outstanding amount or are additional to it.
The background is the war involving the United States, Israel and Iran. Iran has restricted shipping through the Strait of Hormuz, a narrow waterway at the mouth of the Persian Gulf through which a large share of the world's oil passes, in response to US and Israeli attacks. Crude exports from the Middle East have been returning to near pre-war levels in recent weeks, but diesel remains tight because refineries were damaged during the conflict. Ukraine's strikes on Russian refineries, part of its response to Moscow's attacks, have further squeezed the market.
Why this matters: diesel powers trucks, farm machinery, ships and much of the industrial economy, so shortages and price spikes quickly feed into transport and food costs, a pressure felt in the US and elsewhere. The coordinated release shows allies seeking to calm markets while avoiding a trade dispute over fuel exports. Whether it brings lasting relief will depend on how quickly refining capacity recovers and on the situation in the Strait of Hormuz.