US urges Europe to immediately release diesel reserves amid price surge

US Treasury Secretary Scott Bessent said on social media that European partners should speed up existing commitments and immediately make additional diesel supplies available to ease ongoing market disruptions. Reports indicate the Trump administration wants France and Germany specifically to draw down their fuel stockpiles.

President Donald Trump raised the possibility on Wednesday of banning US diesel exports, while acknowledging such a move could push gasoline prices higher. On Thursday he told reporters in Texas he "may" ask European countries to release their reserves. Elevated energy costs are seen as a political risk for the Republican Party ahead of next month's midterm elections.

Cautious European response

EU Trade Commissioner Maros Sefcovic, speaking at G20 trade talks in Milwaukee, said any US export ban would be "unexpected" for Europe and would have "very dramatic consequences" for its economy. He said he had not discussed energy exports in detail with US Trade Representative Jamieson Greer, but the two sides agreed to stay in close contact.

France's deputy trade minister, Nicolas Forissier, said he could not imagine a ban being imposed, stressing diesel's importance to both sides and a shared intent to find balanced solutions. The French presidency said no formal request for reserve releases was made when President Emmanuel Macron met Trump on the sidelines of the UN General Assembly last week.

Macron is expected to convene a G7 video meeting in mid-October to discuss measures to address rising fuel prices, including coordinated reserve releases. Since the start of the war with Iran, average US diesel prices have jumped more than 70 percent to $6.39 a gallon, according to AAA data.