US threatens diesel export ban over European fuel reserves

The Trump administration has issued an ultimatum to Germany and France, demanding they release emergency diesel reserves to help mitigate rising global fuel prices. Failure to comply could result in a potential ban on diesel exports from the United States, according to sources familiar with the discussions.

In response to the pressure, the European Commission, Germany, France, Italy, the United Kingdom, and Ireland held a conference call to coordinate a unified response. These nations aim to respond with a “coordinated voice,” ensure that any decision to release reserves is managed through the International Energy Agency (IEA), and seek to de-escalate tensions with Washington.

The US government has expressed frustration with European nations, alleging they have not fully honored previous commitments to release emergency oil and petroleum product reserves. US Energy Secretary Chris Wright has proposed the release of strategic reserves as an alternative to imposing export bans.