US and EU in tense negotiations over diesel reserve releases

The United States is pressuring European Union member states to release significant portions of their strategic diesel reserves to combat record-high prices and supply disruptions caused by the war in Iran and tensions in the Strait of Hormuz. Washington has reportedly threatened to restrict its own diesel exports to Europe if the EU fails to act, with France and Germany identified as key targets for these demands. Officials have discussed proposals involving the release of 120 million barrels of diesel, though some reports mention a French initiative for 50 million barrels of diesel alongside 50 million barrels of crude from International Energy Agency (IEA) members.

The European Commission has formally rejected the possibility of a U.S. export ban, labeling it a threat to transatlantic trust, and is coordinating with the IEA to determine a collective response. A group of countries including France, Germany, the UK, Italy, and Ireland has engaged in emergency talks to harmonize their stance. European Energy Commissioner Dan Jorgensen confirmed that discussions are ongoing, emphasizing that any decision will be made in collaboration with the IEA. While the commission states there is no immediate physical shortage within the EU, they are preparing for potential market interventions to stabilize prices for industry and consumers.