G7 to release up to 100 million barrels of oil, diesel from reserves

Leaders of the Group of Seven (G7) have announced plans to release up to 100 million barrels of oil from strategic reserves as global oil prices continue to surge amid the ongoing war involving the United States, Israel and Iran.

The decision comes amid stalled negotiations and renewed geopolitical tensions that have heightened fears of prolonged disruptions to crude oil exports and shipping routes across the Middle East, raising concerns about the recovery of global oil supplies despite expectations of a ceasefire.

The sustained increase in crude oil prices underscores the market’s sensitivity to developments in the region, with prices trading between approximately $104 and $108 per barrel amid persistent supply concerns and geopolitical uncertainty.

In a statement following a meeting chaired by French President Emmanuel Macron, the G7 said the release would be coordinated through the International Energy Agency (IEA) over the next four months.

The group added that the release would include a “frontloaded substantial diesel release within the first 20 days by G7 members and partners”.

It also said it would “convene in the context of the IEA in the coming days to discuss the possibility of additional diesel releases as necessary”.

The announcement came shortly after US President Donald Trump said in a post on his Truth Social account that Europe had “just agreed to release a massive amount of their heavily stocked Diesel Oil”, Al Jazeera reported.

The G7 comprises Canada, the United States, France, Germany, Italy, Japan and the United Kingdom, alongside the European Union as a non-enumerated participant in the grouping.

Mr Trump has recently pressured European countries, particularly Germany and France, to release their diesel stockpiles to ease soaring energy prices caused by disruptions to shipping traffic in the Strait of Hormuz. However, several European officials have expressed reservations about the proposal.

The war involving the US, Israel and Iran, which began on 28 February, has triggered a surge in global energy prices, with disruptions to shipping routes and concerns over crude oil supplies contributing to market volatility.

According to Eurostat’s June 2026 data, European Union countries and the United Kingdom held about 52 million tonnes of gas, oil and diesel stocks. This includes nearly 38 million tonnes of emergency reserves held by EU member states.

EU rules require member states to maintain emergency oil stocks equivalent to at least 90 days of net imports or 61 days of domestic consumption, whichever is greater.

Mr Trump had previously threatened to ban US diesel exports if European countries failed to release their stockpiles.

The European Union, whose member states rely heavily on diesel imports, said earlier on Friday that it firmly rejected the threat.

The national average price of diesel in the United States stood at $6.37 per gallon on Friday, according to the American Automobile Association (AAA). The price reached a record high of $6.52 on 22 September.

Rising fuel prices have become a politically sensitive issue for Mr Trump and his Republican Party ahead of the US midterm elections in November, with the president’s approval ratings on the economy declining as the vote approaches.

Diesel is a critical fuel for several major sectors of the US economy, including transportation, construction and agriculture, making sustained price increases a concern for businesses and consumers.

US diesel inventories fell to a record low of 107.9 million barrels as of 11 September 2026, further highlighting concerns about domestic fuel supplies.

In March, the IEA’s 32 member countries agreed to release 400 million barrels of oil from their emergency reserves in response to supply disruptions. However, officials have said the release has yet to be fully completed.

For Nigeria and other African economies, the prolonged disruption poses significant economic risks, particularly as higher global crude and refined petroleum product prices feed into domestic energy costs, transportation expenses and inflation.

In Nigeria, rising international oil prices have coincided with increases in the prices of petrol, diesel and aviation fuel, intensifying pressure on households, businesses and the aviation industry.

The development has also heightened concerns over potential disruptions to air transport, as aviation workers’ unions continue to threaten industrial action over rising operating costs.

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Petrol prices in parts of Nigeria have climbed to nearly N1,500 per litre from between N1,200 and N1,300, following an earlier ceasefire agreement, reflecting renewed market uncertainty as negotiations falter.

The rising cost of fuel is expected to exert further pressure on transportation and food prices, worsening the cost-of-living challenges facing a significant proportion of Nigerian households.

Although the government has continued to roll out compressed natural gas (CNG) buses and other interventions aimed at reducing transportation costs, the sustained increase in fuel prices continues to pose challenges for businesses and consumers.