President Donald Trump has abandoned plans to restrict US diesel exports after G7 leaders agreed to release 100 million barrels of diesel and crude oil in an emergency effort to ease global energy market pressures.
The decision followed a video conference of G7 leaders chaired by French President Emmanuel Macron, who had urged Washington and European governments to coordinate their response to soaring fuel prices.
Trump had threatened to ban US diesel exports as pressure mounted on governments to release strategic fuel reserves. The prospect raised concerns in Europe, which relies heavily on fuel imports.
Following the G7 meeting, Trump said the United States would not proceed with the export ban.
“And we’re not going to be doing the export ban,” Trump said, after describing Europe’s planned release of diesel reserves as a “major world contribution.”
The G7 countries — Britain, Canada, France, Germany, Italy, Japan and the United States — agreed to coordinate the release of 100 million barrels through the International Energy Agency (IEA).
The release is due to begin immediately and continue over four months, with a substantial amount of diesel to be released during the first 20 days, according to a statement issued by Macron’s office.
The leaders also pledged not to impose energy export restrictions among G7 members.
“We reaffirm our commitment to refrain from export restrictions on energy and energy products between G7 countries,” they said, while calling on other producers to avoid measures that could further tighten global supplies.
Pressure over fuel prices
The agreement follows growing pressure on governments as diesel and other energy prices have surged amid disruption to global supplies.
The US Treasury had warned that American farmers, truckers and businesses should not be left to shoulder the effects of a global diesel shortage.
US Energy Secretary Chris Wright also held talks with his British counterpart, Miatta Fahnbulleh, over the crisis and the UK’s strategic reserves.
European governments had faced pressure to release additional stocks after IEA chief Fatih Birol said earlier this week that part of the reserves made available during a previous emergency release had yet to reach the market.
The IEA’s 32 members agreed last March to release 400 million barrels of oil from reserves, the agency’s largest-ever coordinated release.
Russia adds to market pressure
The latest G7 intervention comes as markets continue to face disruption linked to the war involving Israel and Iran, as well as restrictions on Russian fuel exports.
Russia, a major oil producer, imposed an export ban on diesel following Ukrainian attacks on fuel infrastructure, adding to concerns over global supplies.
The G7 leaders said they would maintain sanctions against Russia while working with the IEA and other partners to prevent further disruption to fuel, gas and other commodity markets.
The coordinated release is intended to increase available supplies while governments seek to contain the impact of higher energy costs on households and businesses.