JUANA SUMMERS, HOST:
It seems President Trump has prevailed on the world's wealthiest nations to release diesel from their stockpiles. That decision came earlier today at an emergency G7 meeting. Trump had been threatening to stop all exports of U.S. diesel fuel if Europeans didn't release their own diesel. A U.S. ban would have pushed already high global diesel prices even higher. And those steep prices, which have risen substantially since the U.S. went to war with Iran, are already squeezing everyone, from farmers to small business owners. NPR's Eleanor Beardsley joins us now from Paris. Hi there.
ELEANOR BEARDSLEY, BYLINE: Good afternoon, Juana.
SUMMERS: Eleanor, tell us more about what the G7 decided today.
BEARDSLEY: Well, in this emergency meeting, they decided to release 100 million barrels over the next four months, beginning immediately, and they'll begin by releasing barrels of diesel fuel in the first 20 days. France chairs the G7, and President Emmanuel Macron convened the meeting by video conference, which included the head of the International Energy Agency, which is based in Paris.
Macron said the release would be coordinated by the IEA. Macron said G7 members would also coordinate to increase production and bring down transport costs like the insurance for tankers, he said, and push to get more tankers flowing through the Strait of Hormuz.
SUMMERS: And, Eleanor, President Trump's earlier threat to cut off diesel fuel experts - did it work?
BEARDSLEY: Well, I would say, yes, that pressure did work, even though no one outright said so. You know, Europe is extremely dependent on imports of oil and diesel from the Middle East and the U.S., and its dependence has increased since Russia's war on Ukraine - because Russia no longer is a supplier - and since the Iran war and the choking of the Strait of Hormuz. Macron has called a possible U.S. diesel export ban, quote, "catastrophic." Just take France. It consumes about 600,000 barrels of diesel a day and imports half of that.
Macron convened today's meeting after calling President Trump. Macron wants a coordinated approach between partners to the energy crisis, and the French president spoke to the media just after the G7 put out its statement, and he said this. Let's listen.
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PRESIDENT EMMANUEL MACRON: (Speaking French).
BEARDSLEY: "We have also agreed there will be no export bans or limitations between partners in any category," he said. "There were rumors in the market about that, and that's what made prices rise," said Macron. "So what we've done sends a signal of unity, and this should also help bring world prices down." You know, the G7 statement includes in writing that commitment of no export restrictions on energy products between G7 partners. That's a win for the Europeans who import a lot of oil and diesel from the U.S.
SUMMERS: What are the domestic political considerations for EU leaders?
BEARDSLEY: Well, they're huge. You know, while Europeans are not involved in the Iran War and did not support it, skyrocketing energy prices are hurting consumers and businesses on the continent and putting so much pressure on governments that are already not very popular. Europe's diesel prices have more than doubled since the start of the U.S.-Iran war in late February.
In France, Juana, diesel is $10 a gallon. Farmers, fishermen, truckers - all these categories of workers use diesel. They're also known to protest and shut down cities and highways, so leaders are really worried about social unrest. You know, we've seen some student protests turn violent here in France in the last week. It wasn't directly related to fuel costs, but anything could happen.
And in Germany, the centrist party of Chancellor Friedrich Merz is under pressure after electoral gains on the far right and far left in state elections. So these governments are in fragile and tense situations.
SUMMERS: NPR's Eleanor Beardsley in Paris, thank you.
BEARDSLEY: You're welcome. Transcript provided by NPR, Copyright NPR.
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