The Group of Seven (G7) has agreed to coordinate the release of 100 million barrels of oil from strategic reserves through the International Energy Agency (IEA) over four months, including a substantial diesel release in the first 20 days, as governments move to ease surging fuel prices and stabilize global energy markets.
Key Highlights
- G7 nations agreed to release 100 million barrels of oil reserves through the IEA.
- The release will take place over four months.
- A substantial amount of diesel will be released within the first 20 days.
- The move is aimed at stabilising global energy markets and easing fuel-price pressures.
- G7 countries agreed to coordinate refinery maintenance and increase production where possible.
- Leaders called for continued movement of energy products without new export restrictions among G7 countries.
- The decision comes amid disruptions to global energy supplies linked to the conflict involving Iran and restrictions around the Strait of Hormuz.
- Diesel prices have reached record levels in several markets, putting pressure on motorists and businesses.
G7 Approves 100 Million-Barrel Oil Reserves Release
The G7 leaders reached the agreement during a virtual meeting on Friday, October 2, 2026, as governments seek to respond to severe volatility in international oil and fuel markets.
According to the G7 leaders’ statement, the coordinated release of 100 million barrels will begin immediately and run for four months under the coordination and monitoring of the IEA.
The agreement includes a front-loaded release of diesel during the first 20 days, reflecting concerns over tight supplies of refined petroleum products.
G7 Moves to Increase Diesel and Refinery Output
In addition to the G7 oil reserves release, leaders agreed to coordinate refinery maintenance schedules to avoid simultaneous shutdowns and temporarily increase refinery utilisation where feasible.
The G7 also called for engagement with countries that have significant refining capacity to increase global production of refined products, particularly diesel.
The measures are designed to increase the availability of fuel on international markets as governments respond to rising prices.
Iran Conflict and Strait of Hormuz Disrupt Global Energy Markets
The emergency action comes amid continuing disruption to global energy supplies.
The IEA has reported that diesel and gasoil exports from Gulf countries remain significantly below pre-conflict levels, while disruptions affecting Russian refining and exports have further tightened global supplies.
The Strait of Hormuz has also remained severely constrained, affecting the movement of oil and refined petroleum products.
The G7 called for the restoration of navigational rights through the Strait of Hormuz and said it would continue working with international partners to support energy security.
Trump Had Called for European Diesel Reserves to Be Released
The G7 agreement follows pressure from the United States for European countries to make more diesel available from strategic stockpiles.
Earlier on Friday, US President Donald Trump said Europe had agreed to release a “massive amount” of diesel reserves and that the process would begin immediately.
European governments had been discussing proposals involving the release of diesel and crude oil reserves through the IEA as fuel prices climbed.
UK Diesel Prices Cross £2 Per Litre
The fuel crisis has also affected motorists and businesses in the United Kingdom, where average diesel prices have reached £2 per litre, according to the RAC.
The increase has raised operating costs for motorists, farmers, haulage companies and other businesses that rely heavily on diesel.
The UK remains required as an IEA member to maintain oil stocks equivalent to at least 90 days of net oil imports.
G7 Seeks to Prevent Further Energy Supply Restrictions
The G7 leaders also reaffirmed their commitment to avoid export restrictions on energy and energy products between G7 countries.
They called on oil-producing countries to avoid measures that could further intensify market tensions.
The IEA will monitor implementation of the 100 million-barrel oil reserves release and is expected to provide an initial follow-up report within 20 days.
What the G7 Oil Reserves Release Could Mean
The coordinated release is intended to increase the immediate availability of crude oil and refined products, particularly diesel, and help reduce pressure on global fuel markets.
However, the extent and duration of any impact on pump prices will depend on how quickly the reserves reach the market, refinery capacity, global demand and the broader security situation affecting major oil supply routes. For more updates, follow us on X.
