US tells European allies to act ‘immediately’ to lower diesel prices

On Thursday, the United States urged its European allies to release strategic diesel reserves "immediately" in order to reduce global diesel prices, following a surge caused by the US war on Iran. US Treasury Secretary Scott Bessent called on European partners to accelerate the delivery of their existing commitments and provide additional supplies to address ongoing disruptions.

EU member states were scheduled to discuss a coordinated response to the crisis on Friday. US President Donald Trump hinted at the possibility of banning diesel exports during a Wednesday press conference, though he later indicated he was still considering the option. US Trade Representative Jamie Prestholdt emphasized the eagerness of both sides to collaborate on the issue during a G20 trade talks event in Milwaukee.

EU Trade Commissioner Maros Sefcovic warned that a US ban on diesel exports would have "very dramatic consequences for our economic performance." French trade minister Nicolas Forissier stated that he couldn't imagine such a ban and stressed the importance of diesel to both the US and European countries. Macron has plans to convene a video meeting of G7 leaders to explore various measures to address the rising fuel prices, including coordination on releasing reserves.

Average US diesel prices have increased by more than 70% to $6.39 a gallon since the start of the Iran war, contributing to higher living costs that threaten to hurt Trump's Republican Party in the upcoming midterm elections.