President Trump just struck a deal that should make life for all Americans more affordable over the next few months.
The Group of Seven nations will release 100 million barrels of diesel, crude oil, and other petroleum products from emergency reserves over the next four months as governments attempt to bring down fuel prices following disruptions to global energy markets.
French President Emmanuel Macron, whose country holds the rotating G7 presidency, announced the coordinated action Friday following an emergency videoconference with President Donald Trump and other G7 leaders.
The releases will begin immediately and will be coordinated through the International Energy Agency.
A “substantial” amount of diesel will be released during the first 20 days, according to the G7 statement, reflecting particular concern about tight supplies of the transportation and heating fuel.
Trump quickly welcomed the agreement.
“Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil,” Trump wrote on Truth Social. “The process will begin immediately.”
Trump had spoken with Macron before the G7 meeting and had been pressing European governments to tap their emergency reserves as diesel prices climbed sharply in the United States.
Administration officials had even raised the possibility of restricting U.S. diesel exports if European allies did not make additional supplies available.
The G7 agreement also included a pledge by member countries not to impose restrictions on energy exports among themselves, reducing the likelihood of such a U.S. export ban.
On Monday, Trump signed an Executive Order to temporarily allow off-road “dyed” diesel for highway use and defer the applicable Federal excise tax, lowering costs for Americans.
“President Trump is addressing fuel affordability for American consumers, farmers, truckers, and workers,” said a White House press release.
“The Administration has already undertaken historic efforts to ensure fuel affordability for Americans, and is taking this action to make available further temporary relief for Americans because of ongoing global conditions affecting the supply of diesel,” it added.
The G7 agreement is broader than Trump’s initial description suggested.
The 100 million barrels will not consist exclusively of European diesel. Instead, G7 members and partner countries will release a combination of refined products — particularly diesel — and crude oil from emergency reserves.
If distributed evenly, 100 million barrels over four months would amount to roughly 830,000 barrels per day, although the accelerated diesel component means the releases will not occur at an even rate.
The latest action comes on top of an enormous emergency release announced by IEA countries in March.
IEA Executive Director Fatih Birol told G7 leaders that approximately 325 million barrels of the earlier emergency commitment had already reached the market, representing more than 80% of the roughly 400 million barrels initially pledged.
The United States had pushed European countries to accelerate their remaining commitments.
Treasury Secretary Scott Bessent said Washington had already released about 172 million barrels under the earlier arrangement and argued that European allies needed to do more.
“America is doing its part,” Bessent said. “We look to our allies to match their commitments with action.”
Diesel markets have faced particularly severe pressure, which ultimately could affect prices for just about everything, considering most products move by truck or train, both of which run on diesel fuel.
The continuing conflict involving Iran has disrupted Middle Eastern energy flows, while Russia has restricted fuel exports amid Ukrainian attacks on Russian refineries.
Although Middle Eastern crude exports have recovered significantly, the IEA said supplies of refined petroleum products remain constrained.
Europe has consequently become increasingly dependent on American diesel shipments, adding to pressure on U.S. inventories and prices.
Macron said the coordinated release should provide relief.
“This common decision and this unity should bring down prices,” he said, adding that increasing available supplies should improve market liquidity and eventually reduce prices at the pump.
The G7 also agreed to maximize energy production and refinery output while continuing efforts to restore freedom of navigation through the Strait of Hormuz, one of the world’s most important energy shipping routes.
Trump had made lowering diesel prices a priority after they surged to record levels in the United States.
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