Europe Agrees to Release Diesel Stocks Amid Price Surge

BRUSSELS: (News Desk) –  European countries have agreed to release diesel stocks as governments face growing pressure to bring down surging fuel prices amid disruptions linked to the Iran war, US President Donald Trump said on Friday.

“Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately,” Trump said in a post on Truth Social.

His remarks came after EU governments held discussions on a French proposal calling for European countries to release 50 million barrels of diesel, while members of the International Energy Agency would release another 50 million barrels of crude oil, according to three sources familiar with the talks.

Under the proposal discussed by European governments, part of Europe’s diesel reserves would be released over a 20-day period in response to calls for an immediate supply boost, two sources said.

French President Emmanuel Macron also chaired a video conference with G7 leaders on Friday to discuss the energy situation. However, it remained unclear whether the G7 had reached agreement on France’s proposed release volumes.

Following reports of the planned stock releases, US diesel futures extended their decline, falling more than 4% to $4.4491 per gallon. European benchmark diesel futures also dropped by more than $100 per metric ton, according to LSEG data.

The discussions come as the Trump administration considers restricting US diesel exports in an effort to lower domestic fuel prices ahead of the November 3 midterm elections.

European governments face a difficult balance between easing fuel costs and maintaining emergency reserves amid concerns over further disruptions to supplies from Gulf producers.

France’s finance and energy ministry did not immediately comment on the discussions.

The Elysee Palace said Macron spoke with Trump overnight and stressed the importance of cooperation to address rising fuel prices and maintain global supplies of refined petroleum products. France currently holds the G7 presidency.

Reuters reported on Thursday that the Trump administration had urged Germany and France to draw down emergency diesel inventories, with a possible US export ban being considered if they failed to act, according to people familiar with the talks.

Two sources said Washington had sought the release of up to 100 million barrels of diesel by major European countries, including France and Germany, within 20 days.

Global diesel supplies have faced additional pressure from disruptions related to the Iran war, a Russian export ban following attacks on its refineries in Ukraine, and China’s decision to suspend October fuel exports to strengthen domestic inventories.

The proposed 50-million-barrel European release would represent about 17% of the EU’s emergency diesel and gasoil stocks, based on Eurostat data from May 2025. It would also equal roughly 3% of the bloc’s annual diesel consumption.

Europe, once heavily dependent on Russian and Middle Eastern diesel, has increasingly turned to US supplies in recent years.

Energy analyst Bob McNally said European countries could release additional diesel and possibly crude oil from strategic reserves as they face pressure from potential US export restrictions.

One source said EU governments also discussed making any agreement on diesel stock releases conditional on a US commitment not to impose a unilateral diesel export ban.

The 32-member IEA agreed in March to coordinate the release of 400 million barrels from strategic oil reserves in response to the Iran war, marking the largest coordinated release of its kind. IEA Executive Director Fatih Birol said this week that members had already released around two-thirds of that volume.