What happened
The G7 has announced the release of 100 million barrels of oil and diesel to ease supply concerns and avoid price spikes. This decision comes after US President Donald Trump threatened to ban diesel exports if European countries did not release their own stocks. The release will include a substantial amount of diesel within 20 days and will last for four months.
The move aims to stabilize energy supplies, build resilience in supply chains, and shield households and businesses from price shocks. The G7 leaders have also agreed not to pursue export bans, which would have pushed up prices elsewhere. The release will be coordinated by the International Energy Agency (IEA) and will comprise a mix of diesel and crude oil.
The decision has been welcomed by European countries, which had pushed back against US threats to turn off American diesel. The move will offer significant relief to countries reliant on imports of the fuel, including the UK, where prices at the pump have topped £2 a litre for the first time.
The G7 leaders have also stressed that they will maintain sanctions against Russia amid its ongoing war in Ukraine. The release of fuel reserves is expected to bring down the prices of petroleum products, particularly diesel, and avoid further price spikes.
