The European Union has strongly rejected a threat from the United States to ban diesel exports unless the bloc releases more fuel stocks to bring down rising fuel prices. European Commission spokeswoman Anna-Kaisa Itkonen stated that a ban would undermine trust in the US as a reliable partner and would not be beneficial to anyone. The EU is willing to work with the International Energy Agency on releasing fuel reserves to contain prices.
The diplomatic tensions come as energy prices skyrocket due to the US conflict with Iran, which has led to high fuel costs in the US, a key issue in the run-up to midterm congressional elections. US President Donald Trump's administration has been pressuring Europe to tap its strategic reserves to ease prices. French leader Emmanuel Macron spoke to Trump and urged G7 nations to work together on the matter, speaking out against any export ban.
The 27-nation bloc is ready to work with the International Energy Agency on the possible release of fuel reserves to contain prices, Itkonen added, following crisis talks between member states and the commission to forge a unified response. France intended to convene a video call of G7 leaders to ensure coordination. Brussels suggested the talks could take place as early as Friday afternoon.
US Treasury Secretary Scott Bessent had cranked up the pressure on European nations, stating that they should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions. He added that American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage.
The head of the International Energy Agency, Fatih Birol, said European nations were yet to release part of the stocks they had agreed to in an earlier bid to ease prices in March. A big chunk of the 400 million barrels of oil from reserves agreed to by the 32 members of the IEA had been released, but some remained, both in terms of crude oil and products.
Diesel prices in the US and Europe have hit record highs due to the US-Iran war, with Ukrainian attacks on Russian energy infrastructure also blamed for pushing up prices. The issue has emerged as a major drag for Trump's Republican Party in the coming midterm elections, in which it risks losing control of Congress. Trump floated the possibility of banning US exports of diesel, an alarming prospect for the EU.
EU trade chief Maros Sefcovic warned that a ban would have dramatic consequences for the EU's economic performance. The Trump administration wants France and Germany in particular to tap their stockpiles of diesel to try to curb prices. The EU and US are working together to boost the supply of refined products and lower costs for consumers, with US Trade Representative Jamieson Greer stating there was an eagerness on both sides to work together on the diesel issue.
Key points
- The EU has rejected a US threat to ban diesel exports unless the bloc releases more fuel stocks.
- Energy prices have skyrocketed due to the US conflict with Iran.
- The US and EU are working together to boost the supply of refined products and lower costs for consumers.
