G7 Agrees to Release 100 Million Barrels of Oil Amid Global Shortages

The Group of Seven (G7) nations have agreed to release up to 100 million barrels of diesel and crude oil from emergency stockpiles in an effort to curb soaring global prices. The decision comes after the United States threatened to impose a diesel export ban, a move that could have exacerbated existing shortages.

European leaders had initially resisted the US president's demands, concerned about potential vulnerabilities to diesel price increases this winter, especially with the ongoing conflict in Iran. However, following a meeting of G7 leaders, the countries agreed to the release, with some experts suggesting the White House applied significant pressure.

"G7 members have agreed co-ordinated measures to stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks," stated Foreign Secretary Ed Miliband, who represented the UK on the call while the Prime Minister attended a funeral.

Global diesel shortages have persisted since the US initiated its war with Iran in February. Further supply disruptions stem from Russia's ban on exports following Ukrainian attacks on its refineries, and export restrictions imposed by China.

President Trump had reportedly urged European nations to release diesel reserves to lower fuel prices ahead of the upcoming US midterm elections. The threat of a US export ban had already contributed to surging prices and prompted concerns in the UK government, which warned that the nation possessed as little as 40 days' supply in reserve.

The average cost of diesel in Britain has risen by over 40 percent since the start of the US-Iran war, surpassing £2 per liter for the first time. This represents an increase of approximately 57.6 pence per liter compared to February 28.

A government source noted that US warnings coincided with disruptions in the Strait of Hormuz and efforts to impede Red Sea exports, describing the situation as "pretty unhelpful and very concerning."

Officials were reportedly developing contingency plans for potential diesel rationing should the US ban proceed and the Middle East crisis remain unresolved. Britain's vulnerability is highlighted by its limited 40-day reserve and its reliance on the US for a quarter of its imports, in contrast to the EU's approximately 80-day supply and France and Germany's reserves exceeding 200 days.

The G7 agreement stipulates the release of 100 million barrels over four months, with a substantial portion of diesel to be made available within the first 20 days. Critics, however, argue that this measure may only offer a temporary solution, citing a lack of significant strategic diesel reserves in Britain due to past government policies. Howard Cox, founder of FairFuelUK, warned of a potential "full-blown economic fuel crisis" with devastating consequences for hauliers, farmers, and families if supply tightens further.