G-7 Countries Agree to Release 100 Million Barrels of Diesel After Trump Threatens Export Ban

President Donald Trump announced Oct. 2 that European countries would release a "massive amount" of emergency diesel reserves after France convened an emergency meeting of G-7 leaders, averting a threatened U.S. export ban that had stoked transatlantic tensions.

The G-7 committed to a coordinated release of 100 million barrels through the International Energy Agency over the next four months, including a frontloaded substantial diesel release within the first 20 days, according to a joint statement from the Elysee Palace. The agreement came just hours after the European Commission sharply criticized the proposed export ban, which European Commission spokesperson Anna-Kaisa Itkonen warned would "undermine our trust in the United States as a reliable partner."

The diesel standoff unfolded against the backdrop of November's midterm elections, with Trump under domestic pressure to address soaring fuel prices. The average price of a gallon of diesel stands at $6.37 in the United States, according to the AAA motor club, compared to $9.53 in the European Union, per European Commission data. Trump had explored a range of strategies in recent weeks to lower prices, including the threat of cutting off U.S. diesel exports — a move that would have been particularly damaging for European countries that rely heavily on American supply.

U.S. Energy Secretary Chris Wright had opposed a blanket diesel export ban but pushed European countries to do more to lower prices. After the G-7 announcement, Trump told reporters that a diesel export ban was "never really on the table" and said the U.S. does not intend to restrict diesel exports to allies in the future.

Energy strategist Clay Seigle warned that the reserve release is a temporary measure, saying, "Raiding an oil supply piggybank is no substitute for solving the underlying problem which is insufficient production relative to demand." Analysts noted that both the ongoing war in Iran and the escalation in fighting between Russia and Ukraine have contributed to higher energy prices.

Reporting by USA Today. Read the original report: Will diesel prices go down? Trump says Europe to draw on reserves.