With global diesel markets under mounting strain, the International Energy Agency (IEA) has urged its member governments to move faster on releasing strategic reserves, prioritising diesel. In a letter sent ahead of Thursday's governing board meeting, IEA Executive Director Fatih Birol asked countries that have not yet delivered on their March pledges to accelerate the remaining volumes and to consider whether additional releases are needed.
The March agreement saw the IEA's 31 member states commit to releasing 400 million barrels from emergency stockpiles to cool soaring energy prices. According to an internal document seen by Euronews, 326 million barrels have been released so far. Some countries have already exceeded their original commitments, which means the 100 million barrels announced by the G7 in September could be covered within the existing framework if all members fulfil their pledges.
Birol's letter, published on Sunday, asks all members to assess "whether additional diesel releases are necessary" and, if so, to specify how much they could contribute and by when. The governing board will review these efforts at its meeting on 15 October. "As we did in March, I believe we can once again demonstrate the IEA's capacity to act together in support of energy security and economic stability," Birol said.
The urgency reflects a global squeeze on diesel supplies. Disruptions in the Middle East, including the Iran war, have affected crude shipments through the Strait of Hormuz, while refinery damage has limited fuel output. Although data from Kpler shows that crude and condensate exports from the Middle East Gulf (excluding Iran) returned to pre-war levels in September, much of that oil now travels via alternative routes or is transferred between tankers offshore, adding cost and complexity.
US-Russia diesel deal adds a new dimension
The IEA's call comes just two days after US President Donald Trump announced a diesel supply agreement with Russia. Washington has temporarily eased sanctions on Russian diesel, allowing its sale and delivery, including imports into the US, until 7 April 2027. Moscow, for its part, said it was ready to supply oil and petroleum products to the US and global markets following a phone call between Trump and Russian President Vladimir Putin.
"I am convinced this will have a positive impact on the entire global economy," Putin said, according to the Russian statement. European sanctions on Russia remain in place, but additional Russian supply could help ease diesel prices worldwide. The actual impact will depend on how much fuel Russia can deliver, given that its refineries have suffered damage and production capacity is limited.
The move has drawn sharp criticism from European leaders. EU ministers have pushed back on the Trump-Putin diesel deal, vowing to keep sanctions intact. The European Parliament has also called for a tougher EU stance on China over trade and Ukraine, signalling a broader geopolitical rift. Meanwhile, Ukrainian President Volodymyr Zelenskyy has slammed the Russian diesel deal, as Trump calls for new Ukrainian leadership.
For European consumers and businesses, diesel prices remain a sensitive issue. The fuel is vital for transport, agriculture, and industry across the continent, and price spikes feed directly into inflation. The IEA's push for faster releases is aimed at stabilising markets and preventing further economic pain.
As the governing board convenes, the key question will be whether member states can agree on additional measures beyond the existing commitments. Some countries, particularly those with large strategic reserves like Germany, France, and the Netherlands, may be able to contribute more. Others, however, may be constrained by domestic political pressures or by the need to maintain minimum stock levels.
The IEA's role as a coordinating body for energy security has been tested in recent years, from the pandemic-induced demand collapse to the current supply disruptions. Its ability to act collectively will be crucial in the weeks ahead, as winter approaches and energy demand typically rises.
In the meantime, the diesel market remains tight, and the effects of the US-Russia deal are still uncertain. European governments will be watching closely, aware that energy security is not just a matter of supply but also of political cohesion.
