Media: Japan to receive first Azerbaijani oil cargo since start of Iran war

Japan is set to receive its first shipment of Azerbaijani crude oil since the outbreak of the Iran war in February.

Japan’s industry ministry said a tanker carrying Azerbaijani crude was expected to arrive as early as May 12 at Yokohama, with the cargo destined for Eneos, Reuters reports.

Before the U.S.-Israeli conflict involving Iran began in late February, Japan relied on the Middle East for around 95% of its crude oil imports. However, Iran’s retaliatory restrictions on tanker traffic through the Strait of Hormuz significantly disrupted those shipments, forcing Japan to diversify its supply sources.

Japan’s refineries were originally designed to process Gulf crude oil during the country’s post-World War II economic expansion, making the shift to alternative suppliers a major logistical adjustment.

Narumi Hosokawa told reporters that while Japan had imported Azerbaijani oil in the past, the cargo arriving on May 12 would be the first since the conflict involving Iran began.

Japan has also increased imports from the United States and recently received a crude shipment from Russia’s Sakhalin-2 project, which remains exempt from sanctions.

Tokyo largely halted Russian crude imports and joined sanctions against Moscow following Russia’s full-scale invasion of Ukraine in 2022.

To address supply shortages linked to Middle East disruptions, Japan has also tapped into its strategic petroleum reserves. The government released reserves equivalent to about 50 days of consumption on March 16, followed by additional releases from joint stockpiles and emergency reserves in May.

According to figures from Japan’s Ministry of Economy, Trade and Industry, the country held oil reserves equal to 205 days of consumption as of May 8, including public, private and joint stockpiles.

By Sabina Mammadli