Why Diesel Prices Hit Records, and What G7 Reserves Do

Diesel prices have traded at record highs, squeezed by tight supply. The wars in Iran and Ukraine are largely blamed, along with Russia curtailing diesel exports after Ukrainian strikes on its refineries.
Diesel is vital for heavy freight transport, delivery services and farm machinery. High prices ripple through shipping costs, food prices and construction.
In response, G7 leaders agreed to release up to 100 million barrels of crude oil and diesel over four months. The release will be coordinated through the International Energy Agency.
The deal also covers refinery coordination and a pledge to avoid export bans on energy between G7 members. After the announcement, US President Trump withdrew earlier threats to ban US diesel exports.
Brent crude closed Friday at $102.25 a barrel. Analysts say the release should ease prices, but a wider Middle East conflict could still push them higher.
The coordinated release is one of the largest in recent years. Markets will watch whether it brings lasting relief at the pump.
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