The Group of Seven has announced the coordinated release of 100 million barrels of oil and diesel over four months to address global fuel shortages that sent prices soaring. The move follows US President Donald Trump's threat to ban American diesel exports if European nations did not tap their own reserves.

The release will begin immediately, with a substantial diesel shipment within the first 20 days, according to a G7 statement released Friday. The coordinated effort involves the US, UK, Canada, Japan, Germany, Italy, France, and the EU, with implementation overseen by the International Energy Agency. G7 members also agreed to forgo export restrictions on energy products among themselves.

Trump said on social media that Europe had "just agreed to release a massive amount of their heavily stocked Diesel Oil." Speaking later at the White House, he called the decision "a great thing" and said the US would not pursue the threatened export ban. "Europe has a lot of diesel and they're going to be making a major world contribution, and so are we," Trump stated.

Treasury Secretary Scott Bessent had argued that US farmers, truckers and businesses "should not be left carrying the burden" as diesel costs climbed. Diesel demand remains inelastic because the fuel powers the trucking and agriculture sectors, making price increases flow directly into food and goods costs.

Global diesel supplies have tightened sharply due to Middle East conflict disruptions and Russia's self-imposed export ban following Ukrainian attacks on refineries. Russia typically ranks as a major diesel supplier. The US exports roughly 1.2 to 1.5 million barrels of diesel daily from domestic refineries that produce four to five million barrels per day, making an American export ban a significant lever over global markets. Over half of UK diesel imports come from the US.

Brent crude briefly fell below $100 per barrel on the announcement but recovered to around $102 by Friday evening as Saudi Arabia and Houthi forces clashed near the Bab-Al Mandeb strait, a critical shipping chokepoint. Matt Smith, director of commodities research at Kpler, attributed the reversal to "rumours of Saudi Arabia planning an offensive into Yemen as it looks to re-establish a safe path via Bab-Al Mandeb."

French President Emmanuel Macron chaired the G7 meeting and said the coordinated action would "bring down the prices of petroleum products, particularly diesel." The G7 also agreed to coordinate refinery maintenance schedules to prevent multiple facilities shutting simultaneously.

The release scope and partner nations involved remain unconfirmed.