US urges Europe to release diesel reserves as prices surge
The United States has called on European allies to release strategic diesel reserves immediately as fuel prices rise after the war on Iran. EU member states are due to discuss a coordinated response, while European officials have warned that a possible US export ban could have severe economic consequences.
The United States has urged European allies to release strategic diesel reserves immediately, as governments confront rising fuel prices linked in the supplied material to disruptions following the US war on Iran. US Treasury Secretary Scott Bessent said European partners should speed up existing commitments and make additional supplies available. The appeal was directed particularly at France and Germany, which Washington wants to draw on their diesel stockpiles to increase refined-product supplies and reduce prices.
EU member states are scheduled to meet with the European Commission on Friday to discuss a coordinated response, according to a commission spokesman. The request has added pressure to transatlantic discussions over how to manage the fuel crisis. US President Donald Trump said on Wednesday that he was considering a ban on US diesel exports, although he also acknowledged that such a move could push petrol prices higher.
On Thursday, he said he might ask European countries to release their reserves. European officials have expressed concern about the possible export restriction. EU trade chief Maros Sefcovic described a US ban as unexpected for Europeans and warned that it could have “very dramatic consequences” for economic performance.
He said the United States and the European Union had agreed to remain in close contact to avoid surprises. France’s minister delegate for international trade, Nicolas Forissier, said he could not imagine a ban and stressed diesel’s importance to both the United States and Europe. He said France would seek balanced solutions, including cooperation with other countries if necessary.
The French presidency said no request to release reserves had been made during a recent meeting between Trump and President Emmanuel Macron. Macron is expected to convene a G7 video meeting on measures including coordinated reserve releases. AAA data cited in the material puts average US diesel prices at US$6.39 a gallon, more than 70 per cent above their level at the start of the Iran war.
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