G7 to release millions of barrels of oil and diesel after Trump threat

The UK was represented at the meeting by Foreign Secretary Ed Miliband, who said the measures would “stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks”.

Macron said the co-ordinated action would “bring down the prices of petroleum products, particularly diesel”. Highlighting the agreement not to pursue export bans, Macron said “President Trump, in particular, was very clear on this point”.

In the joint statement, G7 leaders said: “We will implement our commitments with a co-ordinated release through the IEA of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days by G7 members and partners.”

It is not yet clear which partner countries will release stocks, nor how quickly.

The 100 million barrels will comprise a mix of diesel and crude oil. The price of global benchmark Brent crude oil briefly dropped below $100 a barrel, but rose back to around $102 by Friday evening. Before the US and Israel invaded Iran, it was trading at around $73.

Matt Smith, director of commodities research at Kpler, said oil had risen again due to renewed strikes between Saudi Arabia and the Houthis in Yemen.

“Oil prices were selling off strongly due to the announcement of strategic stock releases in Europe, but they reversed course on rumours of Saudi Arabia planning an offensive into Yemen as it looks to re-establish a safe path via Bab-Al Mandeb,” he said.

European countries had pushed back against US threats to turn off American diesel, against a backdrop of the US-led war in the Middle East and reduced supplies from Russia and China.