

As far as I’m aware peak oil production has not been recognized to have happened yet.
Over the last century, many predictions of peak oil timing have been made, often later proven incorrect due to increased extraction rates.[9] M. King Hubbert introduced comprehensive modeling of peak oil in a 1956 paper, predicting U.S. production would peak between 1965 and 1971; his global peak oil predictions were predictive through the 1990s and 2000s but eventually were deemed premature due to improved drilling technology.[10] Current forecasts for the year of peak oil range from 2028 to 2050.[11] These estimates depend on future economic trends, technological advances, and efforts to mitigate climate change.[8][12][13] Peak oil, Wikipedia
It is still assumed that global oil consumption scales with economic growth and under 2025 consumption increased.
Global liquid fuels consumption increased by an estimated 1.2 million b/d in 2025 and is forecast to increase by 1.1 million b/d in 2026 and 1.3 million b/d in 2027. Consumption growth rises next year as global economic activity picks up pace. Based on forecasts from Oxford Economics, our forecast assumes global GDP will grow by 3.1% this year and 3.3% in 2027. Short-Term Energy Outlook, EIA (U.S. government)

I think it’s better to focus on the tail end of their arguments, as opposed to whether it’s technically possible.
For example, forcing your bank sector to sell off a bunch of assets that are considered “risk free”, comes with consequences.
Also consider that a majority of European leaders seem to be banking on the whole Trump era to blow over at some point soon. They hope to be able to rely on the US again and don’t really want to do any lasting harm (probably).