The Group of Seven leading economies has agreed to an emergency release of 100 million barrels of crude oil and diesel from strategic stockpiles over the next four months, in the largest coordinated energy intervention since March, as record fuel prices squeeze households and businesses.
The deal was struck Friday during an emergency video conference chaired by French President Emmanuel Macron and coordinated through the International Energy Agency. A “substantial” share of diesel will be frontloaded within the first 20 days — a direct response to weeks of soaring prices driven by the US-Israeli war with Iran, which pushed US retail diesel to nearly $6.50 a gallon.
President Donald Trump, who had threatened a US diesel export ban to pressure Europe into action, backed down and hailed the agreement. It marks the second major coordinated release this year, following a historic 400-million-barrel drawdown in March.
The intervention lands just weeks before America’s November midterm elections, with fuel costs ranking among voters’ top concerns. Farmers, truckers and transport companies — all heavily exposed to diesel prices — stand to feel the relief first if the frontloaded release works as intended.
Energy analysts caution, however, that stockpile releases treat the symptom rather than the cause: as long as the Iran conflict disrupts supply routes, prices will remain vulnerable to fresh spikes. The IEA said it stands ready to authorize further releases if market conditions deteriorate.
Sources: Al Jazeera, KRPS/NPR, The Business Times.