Japan Weighs Emergency Oil Reserves Amid Middle East Crisis

In response to the ongoing Iran crisis that has disrupted global energy supplies, the Japanese government is contemplating tapping into its national oil reserves. According to Kyodo News, Japan may work with other nations or act independently in light of its heavy reliance on Middle Eastern oil.

Japan sources around 95% of its oil from the Middle East, with 70% traveling through the troubled Strait of Hormuz, blocked by the Iran war. Japan boasts substantial emergency reserves, including national and private-sector stockpiles, equating to about 254 days of imports, some of the world's largest reserves.

Previously, Japan released reserves following Russia's invasion of Ukraine in 2022. As the situation unfolds, officials will assess the necessity and scale of reserve usage, aiming to counter potential shortages resulting from the crisis in the Strait of Hormuz.