The G7 agreed to release 100 million barrels of oil and diesel in an effort to ease supply pressures that have led to a sharp rise in prices.
The group, which includes advanced economies including the United States, said that this step would include a “major rollout” of diesel in the coming days.
US President Donald Trump had threatened to ban diesel exports, a move that would have eased pressure on prices for US consumers ahead of the midterm elections in November, but would have led to higher prices elsewhere.
In a joint statement, the G7 said member states have now agreed to "refrain from imposing restrictions on the export of energy and energy products" among themselves.
The group includes the United States, the United Kingdom, Canada, Japan, Germany, Italy and France, and the European Union also attends its meetings.
Trump had warned that he would ban diesel exports from the United States if European countries did not agree to put more of their reserves on the market.
On Friday, he said on social media: “Europe has just agreed to release a massive amount of its large diesel stockpile. The process will begin immediately.”
Treasury Secretary Scott Besent had argued that US farmers, truckers and businesses "should not bear the burden alone" as prices skyrocketed.
It is noteworthy that diesel is used extensively in the land transport and agricultural sectors, which means that the high cost of this fuel is reflected in the prices of basic commodities such as food.
However, following a meeting of G7 leaders, French President Emmanuel Macron stated that the bloc had agreed to release reserves of up to “100 million barrels” within four months, in coordination with the International Energy Agency.
The UK was represented at the meeting by Foreign Secretary Ed Miliband, who said these measures would “stabilize energy supplies, enhance the resilience of supply chains, and protect households and businesses from price shocks.”
Macron indicated that this coordinated move will lead to "reducing the prices of petroleum products, especially diesel."
Highlighting the agreement not to resort to export bans, Macron said, “President Trump, in particular, was very clear on this point.” In statements he later made from the White House, Trump said that imposing a ban on diesel exports “was not really up for discussion.”
The joint statement of the G7 leaders stated: “We will fulfill our commitments through a coordinated release, through the International Energy Agency, of a total of 100 million barrels, with the process starting immediately and continuing over a period of four months, including the release of large quantities of diesel at an early stage, that is, within the first twenty days, by the members of the group and their partners.”
It is not yet clear which partner countries will release their stocks, nor how quickly.
The 100 million barrels will consist of a mixture of diesel and crude oil.
The price of global benchmark Brent crude briefly fell below $100 per barrel, but rose back to about $102 by Friday evening. Note that the price was trading at approximately $73 before the US-Israeli attack on Iran.
Matt Smith, director of commodity research at Kpler, said that oil prices have risen again due to renewed exchange of strikes between the Kingdom of Saudi Arabia and the Houthi group in Yemen.
He added, "Oil prices witnessed a sharp decline following the announcement of the release of strategic stocks in Europe, but they reversed course upward amid rumors that Saudi Arabia was planning to launch an attack inside Yemen, in an effort to re-secure a safe passage through the Bab al-Mandab Strait."
European countries had opposed American threats to stop supplies of American diesel, in light of the US-led war in the Middle East and the decline in supplies coming from Russia and China.
The G7 leaders also confirmed their intention to coordinate maintenance schedules to avoid multiple refineries stopping work at the same time, while encouraging countries that have the capacity to do so to increase diesel refining operations in particular.
