US tells France and Germany to release diesel stocks or face US export ban, sources say
Trump is considering a potential ban to help bring down US fuel prices
The Trump administration has urged Germany and France to release emergency diesel inventories to combat soaring global fuel prices or face potential US diesel export restrictions, according to sources. This escalation in pressure on Europe comes as US President Donald Trump contemplates the ban ahead of November’s midterm elections.
The EU's relationship with Washington has deteriorated under Trump due to tariff disputes and disagreements over military spending. Releasing more stocks would pose a dilemma for the EU, as it must balance lowering fuel prices at home with maintaining high stocks to counteract a potential worsening fuel crisis should a peace deal between Trump and Iran not be reached.
A call between the EU’s energy taskforce, comprising the European Commission and the 27 EU member countries, will be held on Friday to discuss the situation. The EU had already held a call on Thursday to explore the possibility of releasing diesel stocks. The International Energy Agency (IEA), the world’s energy watchdog, has not yet demanded Germany to release stocks.
US officials have expressed frustration with France and Germany for not fully adhering to earlier commitments to release emergency oil and petroleum product stocks. The US administration has requested the EU to release 120 million barrels of diesel over the next six months. European dependence on US fuel has increased since banning Russian imports post-Ukraine’s invasion and the US-Israeli war with Iran disrupting Middle Eastern supplies.
US Energy Secretary Chris Wright expressed confidence that Europe could ease fuel prices by releasing emergency diesel inventories, highlighting the importance of coordinated release as the country gears up for harvest and winter heating oil seasons. US Treasury Secretary Scott Bessent emphasized that the US has fulfilled its obligations as part of the March agreement among International Energy Agency members, urging allies to match commitments with action.
The Iran war has disrupted global oil supplies, and Russia has extended its ban on diesel exports until the end of October, further exacerbating market strain. Chinese refiners have halted October fuel exports to restock domestic supplies. France's energy ministry declined to comment, but French President Emmanuel Macron is set to convene a G7 video conference to address rising fuel prices and global refined product availability, including coordination with the IEA.
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