The G7 agreed on October 2 to release up to 100 million barrels of oil and diesel over four months. Here is what the move means and why it matters.

Strategic reserves are emergency stockpiles of oil and fuel. Countries build them to handle supply shocks. The International Energy Agency coordinates releases among member nations. This time, a large share of diesel will be released in the first 20 days.

Diesel prices have hit record highs. In the United States, diesel touched 6.53 dollars a gallon. Europe averaged 2.24 euros a litre. Britain crossed 2 pounds a litre for the first time. High diesel costs raise prices of food and goods, since trucks run on diesel.

Why are prices so high? An eight-month war involving Iran has disrupted supply. Ukrainian strikes on Russian refineries have added pressure. US President Donald Trump had threatened to ban American diesel exports. He withdrew the threat after the G7 decision. The release should ease prices, but long-term relief needs stable supply.