The group of seven nation, along with the European Union, have agreed to release 100 million barrels of diesel stocks in order to tackle soaring commodity prices triggered by the Hormuz energy shock.
G7's move follows consistent pressure by the Trump administration to release diesel barrels as an alternate to Washington imposing an export ban.
The G7 leaders on Friday said the release will begin immediately and continue over four months with "a frontloaded substantial diesel release within the first 20 days" coordinated through the International Energy Agency.
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They added in a joint statement that the nations — France, Canada, Germany, Italy, Japan, the United Kingdom and the United States — will convene again in the context of the IEA in the coming days to discuss the possibility of additional diesel releases if necessary.
The developments come in the backdrop of US diesel prices hitting record highs in September. On Friday, the prices remained at $6.37 per gallon on average.
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Among the G7 members, France currently holds the group's presidency. The European Union also participates in its meetings.
US President Donald Trump declared moments before the G7 announcement that Europe had "agreed to release a massive amount of their heavily stocked Diesel Oil." The world is facing a fuel supply crisis due to Ukraine's attacks on Russian refineries and disruptions in the Middle East from the Iran war.
The Trump administration has been nudging G7 members to release diesel stocks, in lieu of US imposing an export ban.
Treasury Secretary Scott Bessent said Thursday that America's partners in Europe "should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions."
The G7 leaders reached an agreement on Friday to "refrain from export restrictions on energy and energy products" between the members of the group, according to their joint statement. They also called "on all producers to refrain from imposing bans that could exacerbate market tensions."
Trump's push for European countries' release of diesel stocks positions itself in the face of mounting political pressure from Republican lawmakers to tackle soaring fuel prices ahead of the midterm elections in November.
Back in March, members of the International Energy Agency agreed to make available 400 million barrels of crude oil and refined products to address the supply disruption from the Iran war.
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