The G7 countries are set to release 100 million barrels of oil and diesel from their strategic reserves in a coordinated move aimed at cooling surging global fuel prices.
The release, coordinated by the International Energy Agency (IEA), will run over four months, with a large share of diesel scheduled for release in the first 20 days. The decision comes as prices have been driven higher by the Iran war and disruption around the Strait of Hormuz, one of the world’s most important energy shipping routes.
US President Donald Trump welcomed the move and dropped a threatened diesel export ban, according to reports.
Energy analysts say a coordinated release of this size can ease immediate market tightness, though its long-term effect will depend on how the underlying supply situation develops in the Gulf region.