The Group of Seven wealthy industrialised nations has agreed to release up to 100 million barrels of oil and fuel products in an effort to ease rising energy prices and improve supplies.
The release will be coordinated through the International Energy Agency and will begin immediately, with the programme expected to run for four months, according to a statement issued by G7 leaders on Friday.
A significant portion of the initial release will consist of diesel. The G7 said a “frontloaded substantial” amount of diesel would enter the market during the first 20 days, with further releases to follow over the remainder of the four-month period.
The decision comes as fuel prices have risen sharply amid disruptions to global energy supplies. The war involving Iran, difficulties affecting shipping through the Strait of Hormuz and other supply pressures have contributed to volatility in oil and refined-product markets.
US President Donald Trump welcomed the agreement and said the diesel release would begin immediately. The move follows pressure from Washington for European countries to make greater use of their fuel reserves as diesel prices climbed.
US diesel prices have reached record levels, with the national average reported at $6.37 per gallon on Friday, after reaching $6.52 on September 22, according to the American Automobile Association.
The G7 also agreed to coordinate refinery maintenance schedules to avoid several facilities being taken offline at the same time. The group said it would encourage countries with significant refining capacity to increase production of refined products, particularly diesel, where market pressures remain high.
The leaders further reaffirmed their commitment to avoid energy export restrictions between G7 countries. They also called for the restoration of navigation through the Strait of Hormuz, a major route for global oil and commodity shipments.
The IEA will monitor the implementation and market impact of the measures, while G7 officials said they could consider additional diesel releases if necessary. A follow-up report is expected within 20 days.
The release is intended to increase fuel availability and reduce pressure on consumers and businesses, although the impact on prices will depend on the scale and timing of the releases, as well as developments affecting global energy supplies.