PARIS: G7 countries agreed on Friday to release 100 million barrels of diesel and crude oil from their reserves over four months, leaders said, agreeing to "refrain from export restrictions on energy" and urging others to do the same.
The announcement came after G7 leaders held talks to coordinate action on fuel prices, after the United States upped pressure on Europe to release its strategic reserves by threatening a diesel export ban.
The seven countries agreed to "a coordinated release through the IEA of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days," they said in a joint statement released by French President Emmanuel Macron's office.
The leaders also said that there would be no ban on diesel exports between them.
"We reaffirm our commitment to refrain from export restrictions on energy and energy products between G7 countries and call on all producers to refrain from imposing bans that could exacerbate market tensions," the leaders said.
"Our citizens' concerns about energy prices remain a top priority," they added.
"We will monitor developments closely and stand ready to adjust measures as needed."
Macron had convened a video call of G7 leaders -- a group comprising also Britain, Japan, Canada, Germany and Italy -- to discuss joint action after he spoke with Donald Trump.
Trump has floated the possibility of banning US exports of diesel, which is used in trucks and other hauling vehicles, an alarming prospect for the EU, which relies heavily on fossil fuel imports.
US pressure
The flurry of diplomatic activity came a day after US Treasury Secretary Scott Bessent cranked up the pressure on European nations.
"Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions," Bessent posted on social media.
"American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage," he wrote.
US Energy Secretary Chris Wright likewise held talks with his British counterpart Miatta Fahnbulleh on the crisis, including on the UK's strategic reserves.
British dairy farmer Keith Blackshaw, in the Derbyshire hamlet of Newhaven, complained of a "vicious circle" with high fuel pieces being passed onto customers.
"I'd like to see Mr Trump support us a little bit more really," the 69-year-old said. "He looks after his own. Maybe we should do the same, look after our own."
The 32 members of the IEA agreed last March to unlock 400 million barrels of oil from reserves, their largest release ever.
Earlier this week, IEA chief Fatih Birol said European nations had yet to release part of those stocks, which could happen soon.
"A big chunk of the stocks have been released, but still some remain, both in terms of crude oil and products," Birol told reporters Tuesday after a meeting of EU energy ministers in Dublin.
About a third was yet to come to market, Birol said, adding that further releases were possible since 80 percent of overall IEA stocks "still in our pocket".
Diesel prices in the United States and Europe have hit record highs in recent weeks, with an export ban imposed by major producer Russia in response to Ukrainian attacks on fuel facilities also contributing to global market pressures.
'Dramatic consequences'
Trump on Wednesday floated the possibility of banning US exports of diesel, which is widely used in agriculture, construction and shipping -- an alarming prospect for the EU, which relies heavily on fossil fuel imports.
EU trade chief Maros Sefcovic told reporters Thursday on the sidelines of the G20 trade ministers gathering in Milwaukee that the ban would have "dramatic consequences for our economic performance".
Reports said the Trump administration wants France and Germany in particular to tap their stockpiles of diesel to try to curb prices.
"It is in Europe's best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers," a US official told AFP.
The German government Friday also called for "coordinated and reciprocal solutions", warning against unilateral actions that would destabilise global fuel markets.
Further EU discussions at the ambassador level were also scheduled for Friday afternoon.
Energy price increases in the eurozone surged to 18.8 percent in September, pushing inflation to 3.8 percent, the highest level in three years.