Tokyo plans to release about 80 million barrels from its emergency stockpiles, equivalent to roughly 45 days of domestic consumption, according to government officials. The decision is designed to stabilise fuel supplies and dampen price pressures as shipping through the Strait of Hormuz — a key artery for global energy trade — has been severely disrupted by the conflict involving Iran, the United States and Israel.
Takaichi said Japan would move ahead with the release rather than wait for coordinated international action, reflecting concerns that prolonged disruption could tighten supplies for import-dependent Asian economies. Officials indicated that private-sector reserves would be drawn down first, followed by state stockpiles, allowing domestic refiners to maintain operations and ensure sufficient petroleum product supply to the market.
Energy security has become an urgent priority for Tokyo as nearly all of its crude imports originate from Middle Eastern producers such as Saudi Arabia, the United Arab Emirates, Kuwait and Qatar. Around 70 per cent of that oil typically travels through the Strait of Hormuz, a narrow waterway between Iran and Oman that normally handles roughly one-fifth of the world’s seaborne oil trade.
The ongoing conflict has sharply reduced tanker traffic through the strait after missile and drone attacks targeted vessels and infrastructure across the region. Shipping companies have diverted or halted voyages, leaving more than a hundred tankers anchored outside the corridor while insurers raised war-risk premiums. Oil prices have surged above $100 a barrel amid fears of prolonged supply disruption and escalating geopolitical tensions.
Japan’s move also comes as the International Energy Agency considers one of the largest coordinated releases of emergency oil reserves in history. Member countries of the agency have discussed releasing hundreds of millions of barrels to counter supply losses triggered by the conflict and calm volatile energy markets.
Officials in Tokyo signalled that the unilateral step could be followed by participation in a broader international release if the crisis deepens. Policymakers argue that acting quickly could prevent domestic fuel shortages and limit the economic damage of rising energy costs.
Economic pressure is mounting across Japan as oil and liquefied natural gas prices climb. The country imports the vast majority of its energy resources, leaving it highly vulnerable to geopolitical shocks. Higher fuel costs have already begun to affect industrial production, with petrochemical producers scaling back output and transport costs rising across supply chains.
The surge in energy prices poses a challenge for Takaichi’s government, which has pledged to strengthen economic growth while managing inflation and stabilising household costs. Economists warn that sustained oil prices above $140 per barrel could slow economic expansion and revive fears of stagflation in a country already grappling with a fragile recovery.
Energy analysts say the planned release from strategic reserves may provide short-term relief but will not fully offset the scale of disruption if shipping through the Strait of Hormuz remains constrained. The waterway normally carries about 20 million barrels of oil each day, linking Gulf producers to major Asian consumers including Japan, China and South Korea.
Japan maintains one of the world’s largest emergency oil stockpiles. Combined government and private reserves are estimated to cover more than 200 days of consumption, giving authorities significant flexibility during supply shocks. Such reserves are designed precisely for crises triggered by geopolitical events or natural disasters that threaten global energy flows.
Government officials say the release will be phased to ensure a stable supply chain and avoid sudden market distortions. Domestic refiners are expected to receive the first shipments from storage facilities, allowing them to continue processing crude into petrol, diesel and other fuels.
The last major release of strategic reserves by Japan occurred during the global energy turmoil following Russia’s invasion of Ukraine, when coordinated action among advanced economies sought to stabilise crude markets and ease inflationary pressure worldwide.
Current circumstances, however, present a more complex challenge because of the geographic concentration of supply risks. The Middle East remains the dominant source of Japan’s oil imports, and prolonged instability in the region could reshape energy strategies for Asia’s largest economies.
Policymakers in Tokyo have begun exploring longer-term measures to reduce exposure to supply shocks. Discussions include expanding renewable energy capacity, diversifying import sources and accelerating the restart of nuclear reactors that were shut down after the Fukushima disaster.
Supporters of nuclear power argue that restoring more reactors could lower dependence on imported fossil fuels and help shield the economy from geopolitical turbulence in global energy markets. Opponents remain cautious, citing safety concerns and public resistance in several regions.
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