Japan to release additional oil reserves amid Hormuz disruption

Japan will release an additional 20 days’ worth of oil from its strategic reserves starting in May, Prime Minister Sanae Takaichi announced on April 10, as Tokyo seeks to stabilise domestic supply and reduce reliance on Middle Eastern barrels amid ongoing regional tensions.

The move comes despite a temporary two-week ceasefire between the United States and Iran in their conflict, which began in late February. Iran has yet to lift its near-total blockade of the Strait of Hormuz—a critical chokepoint for global oil shipments—triggering one of the most severe disruptions to energy supplies on record, Caliber.Az reports via foreign media. 

Japan, which depends on the Middle East for roughly 95% of its oil imports, had already begun releasing reserves on March 16, both unilaterally and in coordination with partners. The new tranche is in addition to an earlier plan to make up to 50 days’ worth of oil available.

As of April 7, Japan held reserves equivalent to 228 days of consumption, including 143 days in public stockpiles. The latest release will draw from these public reserves, Takaichi said.

While acting independently in this latest move, Japan will continue coordinating with the International Energy Agency. Narumi Hosokawa, a senior official at Japan’s Ministry of Economy, Trade and Industry, said Tokyo remains engaged in joint crisis management efforts with the agency. Last month, Takaichi also urged IEA Executive Director Fatih Birol to consider a further coordinated release.

Japan is simultaneously diversifying its supply routes. By May, more than half of its oil imports are expected to bypass the Strait of Hormuz, although specific sources have not been disclosed.

Imports from the United States—Japan’s key ally—are set to quadruple year-on-year in May, according to government data. In May last year, the U.S. accounted for about 189,000 barrels per day, or roughly 8% of Japan’s total crude imports.

Tokyo has also approached alternative suppliers across multiple regions, including Malaysia, Azerbaijan, Brazil, Nigeria and Angola.

Additionally, Japan is increasing reliance on Middle Eastern supply routes that avoid Hormuz, including shipments via Port of Yanbu and Port of Fujairah.

To manage domestic demand, the government has instructed suppliers to prioritise direct fuel deliveries to critical sectors such as healthcare, transportation and agriculture, including green tea producers, livestock and fisheries.

By Sabina Mammadli