G7 unlocks oil reserves to ease supplies

G7 countries agreed on Friday to release 100 million barrels of diesel and crude from their reserves over four months, including a substantial diesel release within the first 20 days, as fuel prices surged amid the wars in Iran and Ukraine. The agreement followed urgent talks among G7 leaders to coordinate action on energy prices, with the United States pressing European countries to release strategic fuel reserves and warning it could restrict diesel exports. The leaders said the coordinated release would be carried out through the International Energy Agency (IEA) and begin immediately. They also pledged to refrain from imposing energy export restrictions among G7 members and urged other producers to avoid measures that could worsen market tensions. "Our citizens' concerns about energy prices remain a top priority," the leaders said in a joint statement released by French President Emmanuel Macron's office. The announcement came after Macron convened a G7 leaders' video call following discussions with US President Donald Trump. Trump said separately European countries had agreed to release a "massive amount" of diesel from their reserves. "The process will begin immediately," he said in a post on Truth Social. The European Union had earlier rejected the prospect of a US diesel export ban, with European Commission spokeswoman Anna-Kaisa Itkonen saying such a measure would undermine trust in the United States as a reliable partner. Oil prices fell sharply during Friday's G7 discussions. US West Texas Intermediate crude declined 4% to $89.15 a barrel after falling as much as 5%, while Brent crude dropped 2.6% to $99.63. US diesel prices have risen more than 70% to $6.39 a gallon since the start of the Iran war.