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The USA is pushing for European countries to release diesel reserves to drive down global oil prices.
Donald Trump hints at halting US diesel exports to keep pump prices down at home in order to bring down global oil prices ahead of the upcoming midterm elections, the BBC reports.
Asked if he would press European allies to tap emergency stocks, Trump kept his options open. “We may do that. They have some diesel,” he said.
His strategy centers on flooding domestic markets to immediately lower pump costs for American truckers.
Treasury Secretary Scott Bessent urged Europe to release reserves immediately. In an online post, he stressed that US businesses “should not be left carrying the burden” of soaring fuel costs.
Shockwaves across Europe
The threat is causing serious concern in Britain. According to the RAC, forecourt diesel prices have hit a record peak of 199.79p per litre. Because Britain imports over half its diesel, with 31% arriving from US refineries, any American freeze would hit hard.
Analysts warn of a severe global backlash if exports stop with senior economists warning that a cutoff of US shipments would cause international prices to skyrocket. Essential freight and farming demand cannot easily be cut.
Behind the scenes, officials are holding emergency talks to prepare for potential disruption.
A European Commission spokesperson confirmed there were “lots of calls, lots of meetings” involving “high level contacts” in Washington.
Release the diesel
Reuters reported yesterday that the Trump administration is pressuring France and Germany to use their diesel reserves to drive down global oil prices.
Today, EU governments will discuss a proposal from France to release 50 million barrels of diesel, while the International Energy Agency members would release the same amount.
Global supply strain
British officials maintain that domestic fuel supplies remain stable.
“We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry,” a government spokesperson said. Both the UK and EU require member nations to hold mandatory emergency stock buffers.
Even so, global fuel networks face compounding troubles. War in Iran has constrained the Strait of Hormuz, Chinese refiners paused October exports, and Russian sanctions continue. Any US export limits would push an already fragile energy market closer to the edge.
