TOKYO - Japan is contemplating the release of a portion of its national oil reserves due to supply disruptions stemming from the ongoing Iran crisis. The move aims to ensure stable energy supplies amid concerns over the Strait of Hormuz, a critical oil transit route that has been effectively closed.
Japan, heavily reliant on the Middle East for approximately 95% of its oil, faces significant risk with around 70% of its supply passing through the Strait. The nation maintains substantial emergency oil reserves, equivalent to about 146 days of consumption, alongside private sector and joint stockpiles, totaling some of the world's largest reserves.
While officials previously stated no immediate plans for release, the government is now monitoring the situation closely. Decisions on whether to release reserves, independently or in coordination with other nations, and the quantity, will be made to offset potential shortages. Japan previously released oil reserves in 2022 following Russia's invasion of Ukraine, in coordination with international agencies.