Trump Strikes Deal With Europe For Massive Diesel Oil Release

President Donald Trump is pursuing relief from soaring diesel costs through a coordinated international reserve release and a new domestic measure intended to expand available fuel supplies.

The Group of Seven nations agreed Friday to release 100 million barrels of crude oil, diesel and other petroleum products over four months. Trump followed Monday with an executive order temporarily allowing off-road diesel to be used on highways and deferring the applicable federal excise tax.

The initiatives target a fuel shortage with consequences throughout the economy. Diesel powers much of the machinery that grows food, builds infrastructure and transports goods, making its price a concern for families far beyond those who drive diesel vehicles.

French President Emmanuel Macron announced the reserve agreement after an emergency videoconference with Trump and other G7 leaders. France holds the group’s rotating presidency.

The releases will begin immediately through coordination with the International Energy Agency. The agreement calls for a “substantial” diesel release during the first 20 days, directing early attention to one of the most strained parts of the energy market.

Trump welcomed the decision after pressing European governments to make more fuel available.

“Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil,” he wrote on Truth Social. “The process will begin immediately.”

The president had spoken with Macron before the meeting. His administration had also raised the possibility of limiting American diesel exports if European allies declined to release additional reserves.

The agreement includes a commitment against restrictions on energy exports between G7 members, easing the prospect of an American export ban.

Monday’s executive order adds a domestic component to the effort. It temporarily permits off-road “dyed” diesel for highway use and defers the relevant federal excise tax, measures the White House says will provide further relief.

“President Trump is addressing fuel affordability for American consumers, farmers, truckers, and workers,” a White House press release said.

“The Administration has already undertaken historic efforts to ensure fuel affordability for Americans, and is taking this action to make available further temporary relief for Americans because of ongoing global conditions affecting the supply of diesel,” it added.

The international agreement covers a broader range of supplies than Trump’s initial description of European diesel alone.

G7 members and partner countries will contribute both crude oil and refined petroleum products, with particular emphasis on diesel. Spread evenly over four months, the 100 million barrels would represent approximately 830,000 barrels per day.

The actual schedule will vary because governments plan to move a substantial portion of the diesel onto the market early.

This latest commitment builds on the much larger emergency release IEA countries announced in March.

IEA Executive Director Fatih Birol told G7 leaders that approximately 325 million barrels from that earlier commitment had already reached the market. That accounts for more than 80% of the roughly 400 million barrels originally pledged.

Washington had been urging European governments to accelerate delivery of their remaining commitments.

Treasury Secretary Scott Bessent said the United States had already released approximately 172 million barrels under the earlier arrangement and called on allies to follow through.

“America is doing its part,” Bessent said. “We look to our allies to match their commitments with action.”

The pressure reflects a persistent imbalance in global fuel supplies.

The conflict involving Iran has disrupted Middle Eastern energy flows. Russia has also restricted fuel exports amid Ukrainian attacks on its refineries.

Although crude exports from the Middle East have recovered substantially, the IEA says refined-product supplies remain constrained. Additional crude therefore does not, by itself, resolve shortages of usable transportation and heating fuels.

Europe’s growing dependence on American diesel shipments has added pressure to U.S. inventories and prices, sharpening the administration’s demands for a stronger allied response.

For American businesses, elevated diesel prices increase the expense of moving goods by truck and rail, operating farm equipment and running construction machinery. Those costs can eventually reach consumers through higher prices for everyday products.

Macron said the coordinated release should help ease that pressure.

“This common decision and this unity should bring down prices,” he said.

He also argued that making more supply available would improve market liquidity and eventually reduce pump prices.

Alongside the reserve releases, G7 governments committed to maximizing energy production and refinery output. They also pledged to continue efforts to restore freedom of navigation through the Strait of Hormuz, a critical route for global energy shipments.

Trump made diesel affordability a priority after American prices reached record levels. The reserve agreement and executive order now give his administration two additional tools to address the shortage, though the extent of consumer savings will depend on how quickly supplies arrive and whether broader disruptions ease.