G7 agrees to release 100 million barrels of oil and diesel to curb fuel prices

Coordinated reserve release

The Group of Seven nations agreed on Friday to release up to 100 million barrels of crude oil and diesel from strategic reserves over the next four months. The virtual meeting was convened by French President Emmanuel Macron under France's rotating presidency of the bloc, which brings together Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Under the plan discussed by European and International Energy Agency officials, European governments will release 50 million barrels of diesel while other IEA members provide 50 million barrels of crude. Member states agreed to supply a substantial portion of diesel during the first 20 days and pledged to refrain from placing any export bans on energy products between G7 members.

We have agreed that there will be no limitation or prohibition on exports between G7 members.

Transatlantic negotiations and price drops

The emergency release follows pressure from US President Donald Trump, who had threatened to restrict American fuel exports if European allies did not release diesel from their strategic stockpiles. Overnight discussions between Macron and Trump led to the agreement, with the White House confirming that the release would take effect without delay. US Treasury Secretary Scott Bessent called on European partners on Thursday to accelerate their commitments to counter ongoing supply disruptions. Following the decision, European Brent crude fell 1.98% to $100.28 per barrel, down from a morning high of $101.44, while West Texas Intermediate dropped 2.93% to $90.15 per barrel.

Europe has just agreed to release a massive amount of its stored diesel fuel into the market.

Gulf rerouting and infrastructure

Global energy supply remains exposed to the conflict involving the United States, Israel, and Iran, which began on 28 February 2026. Despite ongoing hostilities, Middle East crude exports have recovered to 17.5 million barrels per day, reaching 98% of pre-war volume according to JPMorgan analysts. By contrast, Iranian exports dropped to near zero following the reimposition of a US blockade in mid-July, down from 1.7 million barrels per day prior to the war. Data from maritime intelligence firm Kpler shows that approximately 40% of regional petroleum exports in September avoided the 38-kilometre-wide Strait of Hormuz by using overland pipelines to ports on the Red Sea and the Gulf of Oman. The remaining traffic across the strait operates through a shuttle system of more than 60 large tankers conducting continuous round trips.

Security threats and regulatory supervision

Hostilities in the Persian Gulf continue to disrupt regional shipping, with 18 commercial vessels hit by Iranian forces in September, the highest monthly total since March. On Friday, the United Kingdom Maritime Trade Operations reported that a projectile struck an oil tanker in the Strait of Hormuz, causing a small onboard fire before the ship resumed navigation. In response, G7 leaders issued a joint statement condemning Iranian attacks, calling for the immediate restoration of navigation rights in the strait, and urging nations with refining capacity to expand diesel production. The IEA will oversee the execution of the reserve release and deliver an assessment within 20 days detailing compliance and future stockpile replenishment measures.