Trump administration asked France and Germany to draw from emergency diesel stocks, threatened ban

Three sources with direct knowledge of the matter said that the administration of US President Donald Trump has asked Germany and France to draw quantities of diesel fuel from emergency reserves to help ease sharply elevated global fuel prices, or else they may face a US ban on diesel exports.

This warning represents an escalation of pressure on Europe at a time when Trump is considering imposing a potential ban on diesel exports aimed at lowering fuel prices in the United States ahead of the congressional midterm elections in November.

For the European Union, releasing additional reserves presents a dilemma, as it must balance the need to lower local fuel prices against maintaining high stockpiles in anticipation of a worsening fuel crisis if Trump and Iran fail to reach a peace agreement.

A spokesperson for the European Commission stated that the EU energy task force, which includes the Commission and the 27 member states, will hold a call on Friday morning to discuss the situation.

Two EU officials said that the European Commission, along with Germany, France, Italy, Britain, and Ireland, held a call today to discuss the potential need to release diesel reserves.

The German Ministry of Economy clarified that the International Energy Agency, the Western energy watchdog, has not yet requested Germany to release its reserves. The date of the agency's next meeting remains unclear.

It was previously reported that the US administration feels deeply frustrated by France and Germany, whom American officials believe have not fully adhered to their previous commitments to draw from oil and petroleum product emergency reserves.

One source, a US official, stated: "It is in Europe's interest to cooperate with the United States as part of our effort to find multiple pathways to enhance refined product supplies and reduce costs for consumers."

A second source, based in one of the European capitals, noted that the United States requested the European Union to release 120 million barrels of diesel over the next six months.

Europe has become more dependent on US fuel after banning Russian imports following the invasion of Ukraine and amid disruptions to Middle Eastern supplies due to the US-Israeli war on Iran.

US Energy Secretary Chris Wright told journalists yesterday, Wednesday, that the US administration expects announcements soon from Europe regarding new diesel supplies.

He added, "We lost some diesel exports from the Middle East, but we are recovering them, and we lost diesel exports from China. So there is a significant amount of disruption."