US Urges Europe to Tap Diesel Reserves as Iran War Drives Fuel Prices Higher

The United States has called on its European allies to release strategic diesel stockpiles without delay, as fuel costs continue to climb amid the ongoing US war with Iran. US Treasury Secretary Scott Bessent made the appeal in a social media post on Thursday, saying European partners should speed up deliveries already promised and make extra supplies available to counter persistent market disruptions.

The push came as European Union member states prepared to convene with the European Commission on Friday to work out a joint response to the price surge. A Commission spokesman confirmed the meeting, which underscores how seriously Brussels is treating the energy squeeze now affecting consumers across the bloc.

Washington's request reflects growing anxiety in the US about the political and economic fallout from expensive fuel. President Donald Trump suggested on Wednesday that he might block American diesel exports altogether, a step that would mark a dramatic intervention in global energy markets. His administration has been searching for ways to bring down costs, with an eye on next month's midterm elections, where energy prices have become a central vulnerability for his Republican Party.

According to the White House, cooperation with Europe serves both sides' interests. A US official told AFP that working together would help expand supplies of refined products and reduce expenses for consumers. The message was echoed at G20 trade talks in Milwaukee, where US Trade Representative Jamieson Greer described a shared willingness to tackle the diesel problem, saying there was eagerness on both sides to cooperate.

Trump, speaking to reporters during a visit to Texas on Thursday, said he "may" formally ask European nations to draw down their diesel reserves. His comments added to the uncertainty hanging over transatlantic energy relations, following his earlier remark that he was still weighing an export ban while acknowledging it could push US gasoline prices higher.

European officials have reacted with caution. EU trade chief Maros Sefcovic, speaking on the sidelines of the two-day G20 trade ministers' gathering in Milwaukee after meeting Greer, said any American move to ban diesel exports would come as a surprise to Europeans. He warned that such a step would have very dramatic consequences for Europe's economic performance.

Sefcovic said he and Greer did not delve into the specifics of energy exports, but the two sides agreed to remain in close contact to avoid any surprises. His remarks highlighted the delicate balance Brussels must strike as it seeks to protect European industry while preserving a cooperative relationship with its most important ally.

France's minister delegate for international trade, Nicolas Forissier, also voiced doubts about the likelihood of an export ban. Speaking to AFP in Milwaukee, he said he could not imagine such a measure being imposed, stressing how vital diesel is to both the United States and European economies. He added that both sides would try to find solutions, and that France would pursue balanced arrangements globally, if not with the Americans then with other partners.

The French government pushed back on the notion that Washington had formally demanded a reserve release. The presidency said no such request was made when President Emmanuel Macron and Trump met on the sidelines of the UN General Assembly last week. Macron is nonetheless preparing to convene a video meeting of G7 leaders to advance coordination on the tools available to address rising fuel prices, including the possibility of releasing reserves. The French president first announced plans for the gathering on September 18, and his office expects it to take place in mid-October.

The scale of the price shock is stark. Average US diesel prices have jumped by more than 70 percent since the Iran war began, reaching $6.39 per gallon according to data from the AAA motor club. That increase has fed directly into higher living costs, intensifying pressure on Republican lawmakers ahead of November's midterm elections, when control of Congress will be at stake.

Energy Secretary Chris Wright, appearing alongside Trump on Wednesday, predicted that announcements from European allies aimed at pushing diesel prices down would soon be forthcoming. His comments suggested the White House believes European capitals are preparing to act, even as EU officials insist no formal demand has yet been presented.

For Europe, the dilemma is a familiar one. Strategic reserves exist precisely for moments of severe supply disruption, but releasing them is a finite measure that can only temporarily ease prices. Officials must weigh the immediate benefit to consumers and businesses against the risk of depleting buffers that might be needed if the conflict escalates further and disrupts shipping routes or refining capacity.

The standoff also carries broader trade implications. The G20 meeting in Milwaukee brought together ministers who are already grappling with tensions over tariffs and industrial policy. Adding a diesel dispute to that agenda risks complicating efforts to keep global commerce flowing smoothly at a time of heightened geopolitical strain.

For now, all eyes are on Friday's talks between EU member states and the European Commission, which could produce a coordinated plan for releasing reserves. Whether Europe moves quickly enough to satisfy Washington — and whether Trump follows through on his export-ban threat — will shape energy costs on both sides of the Atlantic in the weeks ahead. With elections looming and winter demand approaching, the politics of diesel are unlikely to cool anytime soon.