Macron calls on G7 to coordinate response to rising diesel prices; oil prices plunge sharply and European stocks rally collectively.

French President Emmanuel Macron called on the G7 to coordinate a response to surging diesel prices and proposed a large-scale strategic reserve release plan, prompting an immediate sharp decline in international oil prices and a marked improvement in market risk sentiment. According to CCTV News, on October 2 local time, President Macron urged the Group of Seven (G7) to take coordinated action—avoiding export restrictions—to jointly curb rising fuel prices. Meanwhile, Reuters reported that during a Friday teleconference among EU member-state governments, participants discussed a French-proposed initiative: releasing 50 million barrels of diesel from European national reserves, alongside a simultaneous release of 50 million barrels of crude oil by International Energy Agency (IEA) members. Following this news, international crude oil prices plunged—WTI crude fell below the USD 90 per barrel threshold to USD 89.96, down 3.0% on the day; Brent crude likewise dropped below USD 100 per barrel to USD 99.95. Amid market anticipation of the U.S. September nonfarm payrolls report, risk assets broadly strengthened. The Euro Stoxx 50, France’s CAC 40, and Germany’s DAX indices all posted gains exceeding 1%; U.S. equity index futures rose in tandem—Nasdaq-100 futures gained 0.9%, and S&P 500 futures rose 0.5%. U.S. Export Restrictions Exert Pressure on Europe, Leaving It in a Dilemma According to CCTV News, the United States is urging Europe to further draw upon its fuel reserves—particularly pressing France and Germany to release emergency diesel stocks. U.S. officials indicated that Washington hopes the EU will inject 120 million barrels of diesel into the market over the next six months, and has not ruled out restricting U.S. diesel exports to alleviate domestic price pressures. Russia’s ban on refined petroleum product exports and disruptions to Middle Eastern supply have significantly increased Europe’s reliance on U.S. diesel. France consumes approximately 600,000 barrels of diesel daily, roughly half of which is imported. If the U.S. imposes export restrictions, diesel prices in Europe could rise further, intensifying cost pressures on the transport and agricultural sectors. According to Reuters, the Trump administration expressed particular dissatisfaction with France and Germany, with U.S. officials criticizing both countries for insufficient action—and failure to fulfill prior commitments—to release emergency petroleum and petroleum product reserves. U.S. Energy Secretary Chris Wright stated in a Fox News interview on Thursday that he was “highly optimistic” about Europe’s use of emergency diesel reserves to stabilize oil prices.

AI-themed investments maintain momentum; global tech stocks lead gains, bond markets rally collectively, and oil prices may post their longest losing streak in a year.

U.S. President Donald Trump issued tough rhetoric on Iran while simultaneously signaling openness to negotiations, extending oil’s downward trend; Asian bond yields and U.S. Treasury futures rose accordingly, and global markets entered a state of highly sensitive watchfulness. According to CCTV News and Xinhua News Agency, at Washington’s request, U.S. and Iranian representatives held a three-hour meeting on the sidelines of the UN General Assembly and are preparing for follow-up talks. In his UN General Assembly speech, Trump said he faced a major choice—either reaching a deal with Iran to end the war or “swiftly destroying Iran”—while adding that he believed both sides would reach an agreement after the U.S. midterm elections. Earlier, he had described recent talks between U.S. officials and Iranian envoys as “very smooth.” Brent crude fell 1.2% to around USD 94 per barrel, facing its longest consecutive decline in nearly a year. The oil price decline eased market concerns about inflation, which had previously pushed yields to multi-decade highs and weighed heavily on bond markets. Australia’s and New Zealand’s 10-year government bond yields each fell by at least three basis points; U.S. Treasury futures rose in tandem; and Asia-Pacific stock indices edged up 0.1%. European equities opened higher across the board—the Euro Stoxx 50 rose 0.48% at the open, Germany’s DAX gained 0.36%, the UK’s FTSE 100 rose 0.32%, and France’s CAC 40 climbed 0.362%. South Korea’s KOSPI rose 0.49%, partially retracing earlier gains; Japan’s stock market remained closed today. S&P 500 futures showed little change. The U.S. Dollar Index rose for the fourth consecutive trading day, gaining 0.1%. The Japanese yen fell 0.1% to JPY 157.56 per USD. Australia’s 10-year government bond yield declined six basis points to 5.24%. Brent crude currently hovers near USD 94 per barrel. West Texas Intermediate (WTI) crude fell 1.9% to USD 88.79 per barrel.

European Shares Edge Higher as Lower Oil Prices Lift Sentiment

15 hours ago

European stocks rose as falling oil prices boosted sentiment, with the chemicals sector leading gains at 2%. Technology stocks declined amid competition concerns from Chinese memory-chip maker ChangXin Memory Technologies.

reuters

2026-10-13

European Shares Edge Higher as Lower Oil Prices Lift Sentiment

European Shares Edge Higher as Lower Oil Prices Lift Sentiment

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