Tokyo says it will begin releasing crude oil from its national stockpiles on Monday in a move aimed at easing the impact of supply shocks and rising fuel prices triggered by instability around the Strait of Hormuz — a critical oil transit route in the Persian Gulf.
The Japanese government has pledged to release a record 80 million barrels of crude, equivalent to roughly 45 days of domestic consumption for the resource-dependent country. The decision follows a recent spike in gasoline prices across Japan as the conflict threatens shipments from the Middle East, the source of the vast majority of the country’s oil imports.
Authorities have instructed domestic refiners to utilise the released crude to stabilise supplies within the country. The drawdown will reduce Japan’s national reserves by about 17%. It remains unclear how much of the Japanese release will contribute to a broader coordinated action by the International Energy Agency, which is considering a collective global release of up to 400 million barrels to counter supply disruptions and market volatility caused by the war.
Energy analysts say the scale of the move highlights Tokyo’s concern about the potential fallout from prolonged instability in the Gulf region.
According to Yuriy Humber, chief executive of Tokyo-based consultancy Yuri Group, emergency reserves can help stabilise markets in the short term but are not a long-term solution if the conflict escalates.
He noted that while such stockpiles can ease immediate supply pressures and temper price spikes, they mainly serve as a buffer that buys governments time rather than fully replacing disrupted oil flows, particularly if shipping through the Strait of Hormuz becomes severely constrained.
Japan’s reserve system was established in 1978 following the global energy turmoil sparked by the 1973 Oil Crisis. Since then, the country has steadily built one of the world’s largest strategic stockpiles to protect its economy from sudden supply shocks.
Today, Japan — a member of the Group of Seven — relies on the Middle East for roughly 90% of its crude imports and maintains reserves equivalent to about 254 days of consumption.
The government plans to release oil in phases. About 15 days’ worth of privately held reserves will be made available starting Monday, while an additional month’s supply from state-controlled stockpiles is expected to begin entering the market later this month, according to the Ministry of Economy, Trade and Industry.
Officials also say they are working to diversify supply sources as the crisis unfolds. Energy Minister Ryosei Akazawa indicated that Japan is exploring additional imports from the United States, Central Asia, South America and other Gulf producers whose shipping routes can avoid the Strait of Hormuz.
Japan currently imports about 4% of its oil from the United States. The share increased after Tokyo significantly reduced purchases from Russia following the 2022 Russian invasion of Ukraine, a period during which Japan also tapped its reserves to stabilise domestic markets.
Officials in Washington say the current crisis highlights the strategic importance of diversified supply chains across the Indo-Pacific.
Lee Zeldin, administrator of the United States Environmental Protection Agency, noted that crude shipments from Alaska to Japan have historically remained secure, adding that many Indo-Pacific countries may increasingly look to the United States as a reliable energy supplier amid growing geopolitical risks in the Middle East.