Macron, Trump Discuss Energy Crisis as Iran War Disrupts Hormuz Oil Supplies

France is pushing for a coordinated G7 response to the sharp rise in global fuel prices as disruptions to oil supplies and mounting geopolitical tensions threaten to deepen the energy crisis.

French President Emmanuel Macron has discussed the worsening situation with US President Donald Trump and Canadian Prime Minister Mark Carney, with the talks focusing on securing global supplies of crude oil and refined petroleum products while limiting further increases in fuel prices.

France, which currently holds the G7 presidency, is working with the International Energy Agency (IEA) to bring together the leaders of the group for a virtual meeting “as soon as possible”. Paris wants G7 members to coordinate measures aimed at stabilising energy markets and ensuring supplies remain available both within the bloc and internationally.

Macron has also called for closer coordination among European countries, stressing that G7 members have a common interest in responding collectively and keeping trade in energy products open.

Hormuz disruption fuels oil shock

The latest surge in energy prices has been driven by the conflict involving the US, Israel and Iran, disruption to shipping through the Strait of Hormuz and continuing instability linked to the Russia-Ukraine war.

Oil shipments through Hormuz have fallen dramatically since the conflict escalated in February, tightening global supplies and pushing crude prices from around $65 a barrel to above $100.

The disruption has also raised fears that any further escalation could trigger a more severe supply shock. Even where shipments have been rerouted, markets continue to price in the possibility of prolonged disruption.

Diesel shortages add to pressure

The shortage of refined petroleum products has compounded the problem, particularly for diesel.

Ukrainian attacks on Russian refineries, restrictions imposed by China on refined-fuel exports and refinery bottlenecks in other major markets have reduced available supplies. Traders are also factoring in the possibility of further geopolitical disruptions.

As a result, fuel prices have reached record or near-record levels across several economies.

In the US, diesel has climbed to around $6.52 a gallon, while petrol is trading near $4.43. Diesel prices rose by roughly 74-76% year-on-year, with record levels reported across most states.

In Britain, diesel moved above £2 a litre for the first time, reaching 200.01 pence, while petrol stood at about 174.7 pence, according to the RAC.

Energy costs push inflation higher

The fuel shock is increasingly feeding into broader inflation as transportation and production costs rise.

Eurozone inflation has reached 3.8%, its highest level in around three years, with energy prices up 18.8% year-on-year. France has also witnessed protests as consumers face higher fuel costs.

Poland has reported petrol prices of around 8.19 zloty per litre and diesel at 9.14 zloty. In the Philippines, fuel-price protests have intensified, with demonstrators demanding lower pump prices after the government declared a national energy emergency in March.

Germany has also seen inflation rise to around 3.3%, with higher petrol prices contributing to the increase.

Rising costs hit consumers

The energy crisis is putting pressure on household budgets through higher transport, food and logistics costs.

In the US, households spent an estimated $117 billion more on petrol and diesel between March and September 2026 than during the same period a year earlier.

The surge has sparked protests, driver strikes and blockades in several countries, including Syria, Guatemala, Portugal, Indonesia, Spain, France and the Philippines.

Governments have begun introducing relief measures. Poland has imposed a windfall tax aimed at reducing fuel-price pressure, while the European Union has allocated €540 million to help farmers deal with higher energy and fertiliser costs.

G7 response in focus

The upcoming G7-IEA discussions could consider coordinated action to improve supplies, including strategic stock releases and measures to support the flow of crude and refined products.

However, the outlook for fuel prices will largely depend on developments around the Strait of Hormuz. A prolonged disruption could keep crude and diesel prices elevated, while any easing of tensions could bring some relief to global energy markets.

Refinery operations in Russia, China’s export policies and production levels at European and US refineries will also play a crucial role in determining the availability and price of diesel in the coming weeks.