The G7 has agreed to release up to 100 million barrels of strategic oil and diesel reserves over about four months, coordinated through the International Energy Agency. The announcement stressed a front-loaded diesel release within the first twenty days, with room for further diesel if needed. The move responds to soaring fuel costs since the US-Israeli war on Iran began on 28 February and disrupted shipping through the Strait of Hormuz. US President Donald Trump had pressed European governments, especially Germany and France, to tap their diesel stockpiles. He had earlier threatened to ban American diesel exports if they refused, an ultimatum the European Union rejected.
Trump later hailed the outcome as a deal in which Europe would release a large volume of diesel immediately. US diesel averaged about 6. 37 dollars a gallon on the day of the announcement, down slightly from a 22 September peak of 6. 52 dollars. American diesel inventories had fallen to a record low of roughly 107.
9 million barrels. EU members and the UK are estimated to hold around 52 million tonnes of oil and gas stocks, including nearly 38 million tonnes in emergency reserves. Analysts note that the war in the Middle East and the conflict in Ukraine have both tightened diesel supply. For India, a large importer of crude and refined fuels, elevated global diesel prices carry implications for inflation, freight costs and the import bill. Whether the release is enough to calm markets will depend on how long Hormuz shipping stays constrained.