The European Union is holding crisis talks Friday on whether to release emergency diesel and crude oil reserves, as the Trump administration intensifies pressure on European governments to act on soaring fuel prices.
Under a French proposal, E.U. nations would draw down 50 million barrels of diesel from emergency stockpiles, paired with a 50-million-barrel crude release by International Energy Agency (IEA) members, according to CNBC, which cited a Reuters report that relied on a single unnamed source. CNBC said it could not independently verify the report, and a spokesperson for the French government and the IEA were not available to comment.
By Friday morning, Brent crude had lost 3.1%, trading at $99.13 a barrel, and U.S. West Texas Intermediate was off 4% at $89.18.
Treasury Secretary Scott Bessent on Thursday called on European countries to move quickly. “Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions,” Bessent wrote on X. “American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage.”
AAA data show that U.S. diesel prices have climbed 70% since the outbreak of the war with Iran, with the national average touching $6.38 a gallon on Thursday, according to NBC News.
Europe has not yet made firm commitments. A European Commission energy spokesperson told reporters in Brussels that the bloc is keeping close tabs with member governments and that dialogue with the U.S. administration at senior levels is continuing, according to NBC News.
The Trump administration signaled that France and Germany could face a potential U.S. diesel export ban if they refuse to tap their emergency stockpiles, and U.S. officials have expressed frustration that the two countries have not honored pledges to draw down reserves. Energy Secretary Chris Wright said Wednesday he expected European announcements on new diesel supplies soon, but none had come by Thursday evening, according to NBC News.
President Donald Trump appeared to pull back from the export ban idea earlier this week after crude shipments through the Strait of Hormuz resumed, according to CNBC. Trump had mused about a ban on Wednesday, saying “I’m thinking about it,” but the oil industry and some Republican senators pushed back, warning a ban could tighten supplies and raise costs for American consumers.
Three overlapping supply shocks are driving the diesel shortage: Ukrainian drone strikes on Russian refineries prompted Moscow to halt exports, fighting involving Iran has reduced flows from the Middle East, and shipments from China have declined as well, according to NBC News.
