"Blackmail": Europe Fumes as White House Pressure Forces G7 Diesel Release

A White House pressure campaign aimed at pushing Europe to release diesel supplies, or face a potential US export ban heading into winter, has left European leaders divided and privately furious, while drawing oil companies into the dispute and prompting accusations of blackmail. Despite the backlash, the strategy appears to have achieved its goal. According to 10 oil industry executives and European government officials who spoke anonymously to describe the negotiations, senior White House officials led a direct push for European governments to tap into their strategic fuel reserves. The pressure campaign ultimately resulted in G7 countries announcing they would release 100 million barrels of diesel and crude oil from their reserves over the next four months. Why Diesel Prices Have Surged Diesel prices have climbed to record highs, driven largely by the war the Trump administration launched against Iran earlier this year, along with Russia's ongoing war against Ukraine — both conflicts have caused significant damage to fuel refineries across the Middle East and Europe. European Officials Call the Pressure "Blackmail" One European diplomat described the White House's demands, paired with the threat of a US export ban, explicitly as blackmail, according to an official briefed on a call between EU energy officials early Friday. The official said EU member states viewed the US request as coercive and treated it as a broader security concern. During that call, officials reportedly discussed how to accommodate Trump's demands without appearing to capitulate to threats, while others questioned whether the administration could be trusted to avoid implementing an export ban even if Europe complied. Privately, European diplomats expressed significant frustration with the request. Several capitals, including Berlin, pushed back internally during emergency discussions, arguing the administration's ultimatum was primarily intended to ease domestic political pressure in the US ahead of the midterm elections, given Trump's repeated statements about considering an export ban to lower US diesel prices. At least one European diesel trader voiced similar frustration, describing the situation as the US leaning on the EU for help while simultaneously threatening an export ban to compel cooperation — a dynamic the trader characterized plainly as blackmail. The White House's Perspective Kevin Hassett, director of the White House National Economic Council, offered a different framing Friday, arguing that Europe's strategic reserves differ structurally from those in the US, with substantially larger refined product stockpiles, particularly diesel, that could reasonably be tapped to help stabilize the global economy. A Disorganized Diplomatic Approach One European energy official described the overall US approach as messy. Rather than working through the International Energy Agency, the traditional venue for coordinated reserve releases, US officials instead approached countries individually through phone calls and in-person meetings, with proposals shifting from day to day. According to one European official, US Energy Secretary Chris Wright circulated a request in Berlin on Wednesday calling for a 120-million-barrel release. The following evening, US officials reportedly contacted French President Emmanuel Macron directly, requesting a 100-million-barrel release instead, according to a separate official. Wright also reportedly raised the issue informally with another senior European energy official during last week's UN General Assembly meeting in New York. One official criticized the approach as a typical US tactic that bypasses standard diplomatic channels. A Reluctant Reversal Despite major EU countries resolving Thursday to mount a unified response and escalate the matter through the IEA, European leaders ultimately reversed course just a day later. One senior G7 government official described the decision as defensive, acknowledging that while the move benefited Trump politically ahead of the midterms, it also shielded G7 allies from the threatened export ban. The US Energy and Treasury departments did not respond to questions regarding Wright and Treasury Secretary Scott Bessent's roles in the negotiations. White House spokesperson Taylor Rogers said on social media that Trump consistently negotiates deals serving American interests, arguing the agreement would increase market supply and lower diesel prices. Some EU Officials Question Whether the Release Is Genuine Several EU diplomats briefed on Friday's emergency discussions suggested the newly announced release wasn't actually a meaningful concession to the US, but rather a reaffirmation of a prior March commitment to release 400 million barrels — most of which reportedly never reached European markets because they couldn't compete with cheaper US crude. Two senior officials described Friday's announcement as effectively "fake." This assessment appears to conflict with US claims that countries like Germany and France had fallen short of their obligations by releasing only a fraction of their total reserves, which under EU law must cover either 90 days of net imports or 61 days of consumption. Analysts at ClearView Energy Partners flagged ambiguous language in the official G7 statement that appeared to reference the earlier March commitment, suggesting some portion of the newly announced 100 million barrels could represent previously pledged volumes that were never actually delivered. ClearView also noted it remains unclear how much of the release will come specifically from G7 nations versus broader European or IEA partners, or how much diesel will be released immediately versus over time. Macron Pushes Back on the "Threat" Characterization Macron disputed the idea that Trump had pressured G7 leaders into releasing their reserves under threat, describing the discussions as constructive rather than confrontational. He said all parties agreed collectively to release reserves in the proportions discussed, and stated clearly that no export ban was imposed, crediting Trump with being explicit on that point. Internal US Disagreement Over an Export Ban Wright has publicly opposed a US diesel export ban, arguing it would ultimately drive fuel prices higher. Bessent, whom Trump tasked last month with studying the economic impact of a potential ban, reportedly shares similar concerns, though multiple sources within the US oil industry say he would still implement Trump's decision if directed to do so. According to an industry executive and a European official familiar with the discussions, Wright and Bessent also met with oil company executives this past week, pressing them to lobby their European counterparts to release diesel stockpiles and help bring prices down. One industry executive described the administration's message as essentially warning that if European allies weren't pressured into compliance, the US would move forward with the export ban. Industry Warnings About the Ban's Potential Fallout The oil industry has argued that while a diesel export ban might temporarily lower prices at the pump, it would likely backfire by forcing US refiners to scale back operations after losing major overseas markets. Industry representatives have also warned the move could cause significant economic strain in Europe and Latin America, both major customers of US gasoline and diesel exports.