European Union Weighs French Plan to Release Diesel Reserves Under American Pressure

European Union governments initiated intensive discussions on Friday regarding a French initiative to release emergency diesel supplies, responding to intensifying pressure from Washington aimed at curbing escalating energy prices. Two informed sources told Reuters that European administrations examined the French proposal during a conference call. The plan suggests that EU member nations draw down 50 million barrels of diesel, while International Energy Agency member states release an equivalent 50 million barrels of crude oil. The move follows direct warnings from US President Donald Trump's administration to Germany and France, urging them to utilize emergency diesel reserves or face potential American restrictions on petroleum product exports. European nations stressed during consultations that any agreement to release additional fuel reserves must include a binding US commitment not to implement unilateral export bans on diesel. Concurrently, leaders of the Group of Seven are slated to evaluate developments in international markets for crude oil and refined products. One of the sources revealed that Washington specifically pushed major European powers, including France and Germany, to deliver 100 million barrels of diesel into circulation within a strict 20-day timeframe. Trump reiterated that he is considering domestic export restrictions to suppress elevated fuel costs before the midterm elections scheduled for November 3. For the European Union, agreeing to release strategic reserves poses a critical dilemma, as policymakers must balance alleviating immediate consumer prices against retaining adequate buffer supplies should fuel disruptions worsen if peace efforts regarding the Iran war stall. Meanwhile, frustration is mounting in Washington toward Paris and Berlin, with US officials asserting that both capitals failed to satisfy earlier obligations concerning emergency fuel releases. A US official told Reuters that partnering serves Europe's interests, noting ongoing efforts across diverse channels to bolster refined product supplies and reduce expenses for consumers. Additionally, an informed source disclosed that the United States requested the European bloc to dispatch 120 million barrels of diesel over the upcoming six months.