The Trump administration has warned France and Germany to release emergency diesel reserves to help lower global fuel prices or risk facing a potential US ban on diesel exports, according to people familiar with the discussions.
The warning represents a sharp escalation in Washington’s pressure on European allies as President Donald Trump looks for ways to increase fuel supplies and bring down prices ahead of the November midterm elections.
US officials have become increasingly frustrated with France and Germany, which Washington believes have not fully acted on earlier commitments to release emergency oil and petroleum reserves as global fuel markets face mounting disruptions.
“It is in Europe’s best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers,” a US official told Reuters.
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A second source familiar with the discussions said the United States had asked the European Union to release 120 million barrels of diesel over the next six months.
The demand highlights the growing importance of Europe’s fuel reserves at a time when disruptions to major energy-producing regions are tightening global supplies.
Washington Raises Pressure on Europe
The US administration’s warning comes as Trump considers restricting US diesel exports as part of a broader effort to increase domestic supplies and reduce fuel prices for American consumers.
The approach creates a difficult balance for Washington. Limiting exports could increase the amount of diesel available inside the United States, potentially putting downward pressure on domestic prices. But it could simultaneously reduce supplies available to international markets, particularly Europe, which has become increasingly dependent on imported refined fuels.
US Energy Secretary Chris Wright said on Wednesday that the administration expected European countries to announce additional diesel supplies soon.
“We’ve lost some diesel exports from the Middle East, although we’re restoring those, and we’ve lost diesel exports from China,” Wright told reporters.
The disruptions have exposed the vulnerability of global refined fuel markets to geopolitical conflicts and changes in trade flows.
Germany’s economy ministry did not immediately respond to a request for comment, while France’s energy ministry declined to comment.
The White House’s pressure also appears to have become a broader diplomatic issue among Western allies.
An official at the French presidency said Trump and French President Emmanuel Macron did not discuss the issue when they met on the sidelines of the UN General Assembly in New York last week.
Macron, however, plans to convene a video conference of G7 leaders to address rising fuel prices and the availability of refined petroleum products.
The discussions are expected to include coordination over the release of emergency reserves in cooperation with the International Energy Agency.
Why Europe Matters to the Fuel Market
Europe’s position in the global fuel market has changed substantially since Russia’s invasion of Ukraine.
European countries previously relied heavily on Russian crude oil and refined petroleum products. The subsequent sanctions and restrictions on Russian energy imports forced European governments and companies to find alternative suppliers.
The result has been greater dependence on imports from countries including the United States and suppliers in the Middle East and Asia.
That dependence has become more significant as the conflict involving the United States, Israel and Iran has disrupted energy flows from the Middle East.
The loss or reduction of refined fuel exports from major suppliers can quickly affect diesel markets because refining capacity cannot always be shifted between regions immediately.
Diesel is particularly important because it powers much of Europe’s commercial transport, heavy industry, agriculture and logistics sectors. Sustained shortages can therefore affect the broader economy rather than simply increasing prices at fuel stations.
The US Faces Its Own Fuel Dilemma
For Trump, the issue also has a strong domestic political dimension.
Fuel prices are highly visible to American consumers, making gasoline and diesel costs politically sensitive ahead of the November midterm elections.
The administration is therefore examining multiple ways to increase available supplies and reduce costs.
But a potential US diesel export ban could have consequences beyond America’s borders.
The United States has become an important supplier of refined petroleum products to international markets. Restricting those exports could tighten supplies elsewhere, potentially pushing international prices higher even if American prices fall.
That creates a difficult policy tradeoff for Washington.
The administration wants to protect US consumers from high fuel costs while maintaining sufficient supply in global markets. European governments, meanwhile, face pressure to use their own emergency reserves even as they seek to maintain energy security following the loss of Russian supplies.
Europe Seeks a Coordinated Response
France appears to be pursuing a broader G7 response rather than treating the issue as a bilateral dispute with Washington.
Macron’s planned meeting would allow the world’s major industrial economies to discuss the availability of refined products and potentially coordinate emergency stock releases through the International Energy Agency.
Such coordination could help prevent individual countries from taking measures that unintentionally worsen shortages elsewhere.
But disagreements over how much fuel should be released, when reserves should be used and who should bear the cost could complicate the process.
Emergency reserves are designed primarily to protect countries against severe supply disruptions. Releasing large quantities can provide temporary relief, but it also reduces the buffer available if another disruption occurs.
That makes Europe’s response particularly consequential at a time when energy markets remain exposed to geopolitical shocks.
A New Test for Transatlantic Energy Relations
The dispute illustrates how the global energy system has become increasingly intertwined with broader geopolitical and trade relationships.
Europe needs reliable fuel supplies after cutting its dependence on Russian energy, while the United States is attempting to use its position as a major energy producer and exporter to address domestic price pressures.
Trump’s warning to France and Germany adds another layer to that relationship by linking European reserve policy to continued access to US diesel exports.
Whether Europe ultimately releases the amount of diesel Washington has requested will depend on national assessments of market conditions, domestic energy security and the risks of further supply disruptions.
For now, the dispute signals that the energy consequences of conflicts in the Middle East are reaching far beyond the region itself.
As the United States and its European allies try to contain fuel prices, they face a common problem but increasingly different pressures over how the burden of stabilising global energy markets should be shared.
With information from Reuters.
