The United States is pressing European allies to release emergency diesel stockpiles, warning that Washington could otherwise ban its own diesel exports as it tries to bring down fuel prices at home. EU member states are due to meet the European Commission on Friday to agree a coordinated response, while Britain held calls with the Commission, Germany, France, Italy and Ireland on Thursday.
US Treasury Secretary Scott Bessent said European partners should "accelerate delivery on their existing commitments and make additional supplies immediately available". President Donald Trump, speaking in Texas, said he "may" ask Europe to release reserves, and earlier said he was "thinking about" an export ban. According to Politico, citing four sources, Energy Secretary Chris Wright sent the EU a letter asking it to release 120 million barrels over 180 days, which is more than a third of the bloc's estimated 315 million barrels of strategic diesel stocks. Some sources described the request as "rather hypothetical", and the letter reportedly suggested a release could help the US avoid pursuing the export ban. Reuters read it as a warning, saying Washington is frustrated that France and Germany have not fully honoured earlier pledges to release stocks. The Commission could not confirm the letter, but said any coordinated release would have to be agreed through the International Energy Agency. France's presidency said no such demand was made when Emmanuel Macron met Trump at the UN General Assembly last week.
The backdrop is the US war with Iran, which has disrupted shipping through the Strait of Hormuz, the narrow waterway at the mouth of the Gulf through which much of the world's oil passes. Brent crude, the international benchmark, has risen from about $72 a barrel in February to above $101. US diesel prices have climbed more than 70 percent to $6.39 a gallon, according to the motoring group AAA, and fuel costs are weighing on Trump's Republican Party ahead of the November midterm elections. Politico notes that Wright himself and the US energy industry oppose an export ban, arguing it would be counterproductive and could raise costs for American households. Trump has also acknowledged it might push up gasoline prices.
European officials have responded with a mix of alarm and calm. EU trade chief Maros Sefcovic said a ban would be "unexpected for Europeans" and have "very dramatic consequences" for economic performance, though he and US Trade Representative Jamieson Greer agreed at G20 trade talks in Milwaukee to stay in close touch "to avoid any surprises". Greer spoke of an "eagerness on both sides to work together". France's trade minister delegate, Nicolas Forissier, said he could not imagine a ban and that France would seek solutions "if not with the Americans, with other countries". Macron plans a G7 video meeting, expected in mid-October, to discuss coordinating reserve releases.
The stakes are high for Europe, which has grown more reliant on US fuel since curbing Russian imports after the invasion of Ukraine. Europe produces about 70 percent of the diesel it uses, so pumps are unlikely to run dry, but competing for scarce cargoes could lift prices. The UK, which imported about a third of its diesel from the US last year, saw its average diesel price hit a record 199.72p a litre on Wednesday, according to the RAC. Governments also face a dilemma: releasing stocks could ease prices now, but would leave less in reserve if the energy crisis worsens this winter.