U.S. Pressures France and Germany to Release Diesel Reserves as Fuel Markets Tighten

The Trump administration has urged France and Germany to release emergency diesel reserves to help ease global fuel shortages, warning that Washington could impose a ban on US diesel exports if European countries do not take action.

European diesel reserves are under pressure as the United States urges France and Germany to release emergency fuel stocks. [Photo: Woellner Group]

US officials have told European governments that releasing strategic fuel inventories could help relieve pressure on global diesel markets, according to people familiar with the discussions cited by Reuters.

The request comes as supply disruptions linked to the wars in Iran and Ukraine have tightened fuel markets.

The pressure on Europe comes amid continuing disruption in the Middle East.

Attacks on shipping in and around the Strait of Hormuz have raised concerns about oil and fuel supplies, while Russia's suspension of diesel exports has added to the strain on global inventories.

Oil prices have also risen sharply. Brent crude settled at $102.31 a barrel on Oct. 1, according to Reuters, as investors assessed the possibility of renewed US military action against Iran and disruptions to regional energy supplies.

Analysts have raised their average Brent crude forecast for 2026 to $89.05 a barrel, according to Reuters.

At the same time, there have been signs of improving oil exports from parts of the Middle East. Saudi Arabia resumed oil-tanker loadings from Yanbu after restarting operations on its East-West Pipeline.

Goldman Sachs estimated that Gulf oil exports, including so-called dark exports involving ships that have switched off their transponders, had recovered to about 23.3 million barrels per day over the previous week.

The fuel situation has since prompted broader international action.

On Oct. 7, France announced plans to release 10 million barrels of diesel from strategic reserves following a G7 meeting focused on stabilizing fuel markets.