Asia taps strategic oil reserves as Iran war disrupts global energy supply

Japan and South Korea are leading Asian efforts to release strategic oil reserves in response to growing disruptions in global energy markets caused by the widening conflict in Iran, which has curtailed the flow of oil and gas from the Middle East.

Asian countries are particularly vulnerable to supply shocks, relying on Gulf nations for roughly 60% of their crude, most of which passes through the Strait of Hormuz—a key transport route effectively blocked by Iranian actions, according to CNN.

Japan plans to release 80 million barrels of oil, equivalent to 45 days of its 254-day reserve, starting March 16, Prime Minister Sanae Takaichi said. This move precedes a historic decision by International Energy Agency (IEA) members to release a record 400 million barrels of oil from global reserves.

South Korea, which holds 208 days of reserves, announced it has secured an additional six million barrels of crude. Its industry ministry also plans to release 22.46 million barrels in alignment with the IEA decision, although the timeline for the release has not yet been confirmed.

China maintains roughly 1.2 billion barrels of oil, equivalent to about 203 days of its Middle Eastern crude imports, according to global trade analytics firm Kpler.

Taiwan holds a statutory crude oil reserve covering at least 90 days, but only 11 days of liquefied natural gas (LNG). The Taiwanese government said it has secured LNG supplies for March and April and is working to ensure adequate supplies for May.

India’s oil stockpiles are estimated at around 25 days, according to Alicia Garcia-Herrero, chief Asia-Pacific economist at French financial services firm Natixis, while Indonesia has reserves sufficient for roughly 21 days.

Thailand reported a 96-day oil reserve as of March 11, according to its Ministry of Energy.

By Sabina Mammadli