Xinhua
04 Oct 2026

BRUSSELS, Oct. 3 (Xinhua) -- Group of Seven (G7) leaders agreed Friday to release 100 million barrels of diesel and crude oil from emergency reserves in an action coordinated through the International Energy Agency (IEA), as surging fuel prices, disrupted refined-product supplies and threatened U.S. export restrictions added pressure on global energy markets.

Under the agreement, the 100 million barrels will be released over four months, starting immediately, with a substantial amount of diesel to be frontloaded within the first 20 days by G7 members and partners.

The G7 did not specify how much of the total would be diesel or crude oil, or how many individual countries would contribute. It said further diesel releases could be considered if necessary.

IEA Executive Director Fatih Birol said Friday that around 325 million barrels have so far been released under the collective action announced in March, representing more than 80 percent of the 400 million barrels originally pledged, the largest move of its kind in the agency's history.

The group also agreed to coordinate refinery maintenance to avoid simultaneous shutdowns, temporarily raise refinery utilization where possible and encourage countries with significant refining capacity to increase production, particularly of diesel.

Pressure has been acute in global fuel markets, particularly diesel, as two major sources of diesel and gasoil supply have been hit at the same time.

Net diesel and gasoil exports from Gulf countries averaged just slightly more than a quarter of pre-U.S.-Iran war levels, as flows through the Strait of Hormuz remained severely constrained, according to the IEA.

Birol also said that Ukrainian attacks on Russian refineries have added to the pressure on diesel supplies, pushing up prices.

Europe has felt the strain acutely. The European Commission said Friday that diesel prices had doubled since the end of February when the U.S.-Iran war started, contributing to what it described as an "affordability crisis."

EU Energy Commissioner Dan Jorgensen said Tuesday that the bloc had paid more than 100 billion euros (about 113.3 billion U.S. dollars) extra for fossil fuel imports since the start of the U.S.-Iran conflict, without receiving additional energy.

The decision also followed mounting transatlantic friction over how to respond.

The Trump administration had pressed European governments to draw down more emergency diesel stocks and warned that restrictions on U.S. diesel exports could follow if Europe did not act.

The threat carried weight for Europe. The European Commission said last week that the United States accounted for around half of EU diesel imports in August, making the bloc highly exposed to any disruption in U.S. supplies.

Hours before the G7 agreement, the Commission publicly rejected the prospect of a U.S. diesel export ban, saying such a move would benefit neither side and undermine trust in the United States as a reliable partner.

The eventual G7 agreement combined coordinated reserve releases with a commitment to refrain from restricting energy exports among members, a move later welcomed by European Commission President Ursula von der Leyen.

Analysts say the release could provide meaningful short-term relief, particularly if large diesel volumes reach the market quickly.

Alan Gelder, senior vice president for refining, chemicals and oil markets at Wood Mackenzie, estimated that a major diesel stock release could lower wholesale prices by 20 to 30 U.S. dollars per barrel.

But the effect may prove temporary. Gelder said further stock releases essentially buy time while global diesel supply remains below demand and inventories continue to be drawn down, adding that the EU continues to be vulnerable to the export policies of others such as the United States.

Ultimately, the longer-term stability of prices will depend on the restoration of refined-product flows from the Middle East. But with the U.S.-Iran conflict proving difficult to resolve, a swift return to more stable flows may remain out of reach.