G7 agrees to release 100 million barrels of oil from emergency reserves

The Group of Seven has approved a coordinated draw of up to a hundred million barrels from government emergency stockpiles, spanning both raw crude and finished fuel products, to calm an energy market still strained by the war involving Iran. Taken on Friday, the decision will be executed across a four-month schedule under International Energy Agency coordination, with diesel forming a large part of the first releases, due within 20 days.

Price action stayed muted. Brent, the global benchmark, added roughly 9 cents to reach $102.40 a barrel, while US benchmark WTI fell $1.47 to $91.48, per market data reported by CNBC. Traders seem to be weighing the incoming barrels against the risk of another hit to shipping through the Strait of Hormuz.

The diesel focus is deliberate. Washington has pressed European governments to tap fuel stockpiles rather than leaving American consumers exposed to a widening diesel shortage. US Treasury Secretary Scott Bessent argued the cost should not land solely on farmers, hauliers and businesses, saying they should not absorb a worldwide diesel shortfall alone. G7 members also pledged to keep energy trade open among themselves, agreeing not to impose export restrictions on each other that could tighten supplies further.

Why it matters

Emergency reserve releases are the market's last line of defence against a supply shock, and a second coordinated release this year shows how nervous policymakers remain. The 100 million barrels equal roughly a single day of global oil demand spread over four months — so the aim is diesel availability and refining margins, not forcing crude lower. For traders, the message is clear: governments will keep intervening while the Hormuz route stays fragile.