Trump Administration Urges European Nations to Release Diesel Reserves Amid Soaring Prices

The Trump administration has pushed for European countries to urgently release some of their diesel reserves, saying U.S. farmers, truckers and businesses should not be left carrying the burden for global supply disruptions.

The message comes as U.S. President Donald Trump continues to mull over whether to move ahead with a diesel export ban as part of an attempt to get a handle on high energy prices.

Average U.S. diesel prices surged to a record high of $6.50 per gallon late last month, according to AAA, up sharply from a year ago amid supply disruptions fueled by the Iran war and Russia's full-scale invasion of Ukraine.

In a post on social media, U.S. Treasury Secretary Scott Bessent said Thursday that America's European partners "should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions."

He added: "America is doing its part. We look to our allies to match their commitments with action."

The U.S. government is currently facing mounting political pressure to tackle soaring fuel prices ahead of the midterm elections in November.

Trump told reporters in Texas on Thursday that he "may" ask European countries to release diesel reserves. The U.S. president, who previously said he is "very seriously" considering a diesel export ban, appeared to cool on the idea this week, following a resurgence in crude exports through the strategically vital Strait of Hormuz.

Trump said Wednesday that he is still "thinking about" banning diesel exports but acknowledged that doing so may have a "negative impact" on gasoline.

The prospect of the world's largest diesel exporter implementing an outright ban on diesel exports has prompted firm pushback from the U.S. energy industry and raised alarm across the Atlantic. The U.S. supplied around half of the European Union's diesel imports in August, according to the International Energy Agency, underscoring the 27-nation bloc's exposure to a potential U.S. export ban.

EU member states are scheduled to hold crisis talks on Friday, seeking to develop a coordinated response to soaring diesel prices.

Oil prices fell sharply on Friday morning after Reuters reported that European Union member states were discussing a French proposal to release additional diesel reserves following pressure from the Trump administration.

The report, which cited a single unnamed source familiar with details of the discussion, said France had proposed that EU nations release 50 million barrels of diesel and International Energy Agency members release 50 million barrels of crude oil.

Speaking to reporters in Milwaukee at the G20 trade ministers meeting, EU trade chief Maros Sefcovic said he had discussed diesel supplies and soaring prices with his U.S. counterpart, U.S. Trade Representative Jamieson Greer.

"We have every interest in ⁠working together on lowering the prices, be it on diesel or also other products from oil and gas supplies," Sefcovic said, according to Reuters.

He added that any move from the U.S. to restrict diesel exports would be unexpected and have a negative impact on Europe's economic outlook.

Energy strategists at Macquarie Group said Thursday it is understandable that the U.S. position on the global diesel crisis has taken on an apparent global dimension.

"The core issue the US faces is not a diesel problem. Nor is it a refined product problem. It may not even be a petroleum problem. It is a global energy problem," Macquarie Group's Walt Chancellor said in a research note.

"So what is the solution then? In short, more oil through the Strait of Hormuz and out of the Middle East. Anything short of that is really just shuffling deck chairs," he added.

The Strait of Hormuz is a major throughway for the global oil trade that saw ship traffic stifled after the U.S. and Israel attacked Iran in late February. But this week it saw daily exports return to prewar levels.