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G7 caves to US blackmail, announces ‘massive’ release of diesel reserves

The Cradle | October 2, 2026

G7 states will release up to 100 million barrels of emergency oil and diesel stocks over the next four months, French President Emmanuel Macron announced on 2 October, bowing to US pressure to tame diesel prices driven to record highs by the war on Iran.

The release will be coordinated by the International Energy Agency (IEA), and comes the same day as European Commission spokesperson Anna-Kaisa Itkonen said the EU “fully” rejected US threats to halt diesel exports unless Europe drew down more of its reserves.

“We fully reject any ban on diesel. A ban would not be beneficial to anyone. It would undermine our trust in the United States as a reliable partner,” she said.

She added that the EU Oil Coordination Group, due to meet on 15 October, could convene sooner if necessary.

Macron, who currently chairs the G7, had also spoken out against any export ban in a call with US President Donald Trump earlier that day, with his office saying he urged G7 states to act together “without export restrictions.”

The diplomatic scramble followed a push a day earlier from US Treasury Secretary Scott Bessent, who urged European states to speed up delivery on their existing reserve commitments.

“American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage,” he wrote on social media.

Trump threatened the diesel export ban earlier this week, a move EU trade chief Maros Sefcovic warned would have “dramatic consequences for our economic performance.”

The US has threatened to starve France and Germany of diesel unless they release their emergency diesel stocks, with a European source saying Washington is pressing the EU to hand over 120 million barrels within six months.

China has also suspended refined fuel exports for October to rebuild its own depleted reserves, according to Reuters, further tightening a global market already strained by the US war on Iran.

Europe’s reliance on US fuel, which deepened after it banned Russian imports and the US-Israeli war on Iran cut supplies from West Asia, has cost the bloc more than $113 billion in extra energy payments this year, without it receiving “one extra molecule of gas or oil,” according to European Energy Commissioner Dan Jorgensen.

Meanwhile, Washington is also lending energy companies another 40 million barrels from its Strategic Petroleum Reserve (SPR).

The reserve has already fallen to its lowest level since 1982, and releasing the full amount would drag it below the minimum set under federal law.

October 2, 2026 - Posted by | Economics, Russophobia, Wars for Israel | ,

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