Emergency reserves opened: The American ultimatum that jolted Europe

The Trump administration threatened to ban American diesel exports, leading G7 countries to announce the release of 100 million barrels from emergency reserves within four months. Fuel prices in the US, which crossed $6.40 per gallon amid the war with Iran, dropped by 5% following the announcement. Experts warn of depleting emergency reserves.

The Trump administration threatened to impose a complete ban on American diesel exports, an ultimatum that led G7 countries to announce a coordinated release of 100 million barrels of oil and diesel from their strategic emergency reserves within four months, with an emphasis on massive releases in the first 20 days. The move followed heavy pressure from the administration in Washington aimed at curbing the sharp rise in fuel prices ahead of the midterm elections. Treasury Secretary Scott Bessent and Energy Secretary Chris Wright demanded that Europe tap its reserves or face an export ban from the US, the world's largest diesel exporter. Fuel prices in the US hit a record high of $6.40 per gallon amid the war with Iran, now in its eighth month, which has disrupted oil flows from the Middle East. The announcement led to an immediate 5% drop in prices. Experts warn of depleting emergency reserves ahead of the heating and harvest season, emphasizing that if geopolitical disruptions continue, Europe could find itself in a more severe crisis.