Canada and its G7 allies agreed on Friday to release diesel and crude oil into the market as energy prices continue to climb during the Iran war. In a joint statement on Friday afternoon, the G7 nations — the United States, Canada, France, Italy, Germany, Britain and Japan — said they will release 100 million barrels from their stockpiles over the next four months, which will be coordinated by the International Energy Agency. The G7 nations also said they will make a “substantial diesel release” within 20 days and officials will convene in the coming week to discuss whether additional diesel releases will be necessary. However, the statement did not specify how much of the release will be diesel and how much will be crude oil. A September 2026 market report by the IEA suggests diesel accounts for around 30 per cent of global oil demand, and supplies have been severely impacted due to military strikes on oil refinery infrastructure in the Middle East and Russia. “Facing unprecedented volatility in oil markets — with surging prices threatening economic stability and the well-being of our citizens — we have agreed on decisive, coordinated measures to stabilize immediate energy supplies, shield households and businesses from price shocks, and strengthen the long-term resilience of global energy systems,” Friday’s statement read. The decision comes as retail diesel prices climbed to record highs in Canada of up to $2.75 per litre, which triggered truckers protests across the country. Gas prices also remain elevated and averaged around $1.72 per litre at the pumps, according to data from CAA. U.S. President Donald Trump has previously threatened to impose a ban on U.S. diesel exports, a move that analysts say would accelerate stock drawdowns across global markets and increase competition in a market that is already experiencing tight supplies. Canada has ‘backup plans’ in case Trump bans diesel exportsTrump ‘very seriously’ looking at diesel export ban David Oxley, chief climate and commodities economist at Capital Economics, previously said that the economic shock would be comparable to the natural gas crisis in Europe in 2022. “We condemn Iran’s continued attacks against its regional neighbours and its disruption of international trade, energy security and the global economy. We call for the immediate and full restoration of navigational rights and principles in the Strait of Hormuz and express our determination to redouble our collective efforts to that end,” Friday’s joint statement read. • Email: ptran@postmedia.com