G7 approves emergency release of 100million barrels of diesel and crude oil to try and curb soaring prices caused by global shortages

By SAM MERRIMAN, POLITICAL CORRESPONDENT and JASON GROVES, POLITICAL EDITOR

Published: 00:48 BST, 3 October 2026 | Updated: 00:50 BST, 3 October 2026

Europe agreed on Friday to release emergency diesel stockpiles under pressure from Donald Trump, as global shortages saw prices rise above £2 a litre for the first time.

G7 countries including Britain, France and Germany said they would release up to 100 million barrels starting immediately after the US threatened a diesel export ban.

European leaders had sought to defy the US President's demands over fears the continent could be left exposed to diesel price rises this winter if the Iran war drags on. 

But after a meeting of G7 leaders yesterday, European countries gave in to Mr Trump's demands, with experts claiming the White House had 'bullied' them into acting.

Foreign Secretary Ed Miliband stood in for Andy Burnham on the call with world leaders, while the Prime Minister attended his father's funeral.

Mr Miliband said: 'G7 members have agreed co-ordinated measures to stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks.'

There have been global shortages of diesel since the US launched its war with Iran in February. Vladimir Putin has banned exports following a series of Ukrainian attacks on Russian refineries, while China has also imposed export restrictions in response. 

Mr Trump demanded that Europe release diesel reserves into the market to lower fuel prices before US midterm elections next month. He had threatened to impose a US export ban that would risk further shortages if Europe didn't act.

Many garages in the UK are already charging £2 a litre for diesel for the first time (file picture)

The threat of a diesel ban has seen prices surge and triggered panic in Whitehall, where officials have warned that the UK has as little as 40 days' supply in reserve.

The average cost of diesel in Britain has surged by more than 40 per cent since the start of the US-Iran war and surpassed £2 yesterday. A litre of diesel is now on average 57.6p more expensive than on February 28 this year, when it cost 142.38p.

A Government source said: 'The fact that we have these warnings from the US at the same time as ongoing disruption in the Strait of Hormuz and the Houthis trying to shut down exports via the Red Sea is pretty unhelpful and very concerning.'

Another source said officials were already working on contingency plans for potential diesel rationing if the US ban goes ahead and the Middle East crisis remains unresolved. 

Britain is particularly exposed to shocks in diesel prices with its 40-day reserve and reliance on the US for a quarter of its imports. By comparison, the EU has about 80 days supply and France and Germany more than 200 days.

G7 leaders yesterday agreed to release '100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days'.

Critics said it would only be a temporary sticking plaster as Britain has no meaningful strategic diesel reserves due to the policies of successive governments.

Howard Cox, founder of FairFuelUK, said: 'We are perilously close to a full-blown economic fuel crisis. If supply tightens again, the consequences for hauliers, farmers and families will be devastating.'

Transport minister Keir Mather earlier said he wanted to 'reassure people... the United Kingdom has got a diverse range of supply when it comes to diesel'.

READ MORE: Trump drops diesel export ban threat before US mid-terms - as Europe agrees to release reserves