Full Breakdown
Japan Considers Additional Oil Reserve Release Amid Strait of Hormuz Uncertainty
4/9/2026, 2:31:56 PM
Current Situation and Planned Actions
Japan is contemplating a new release of approximately 20 days' worth of oil reserves as early as May 2026, driven by ongoing uncertainties regarding the reopening of the Strait of Hormuz. This strategic waterway is critical for global oil transport, typically facilitating about 20% of the world's oil supply. Japan, which relies on the Middle East for approximately 95% of its oil imports, began releasing oil from its stockpiles on March 16, 2026, in response to supply disruptions caused by geopolitical tensions in the region.
As of now, Japan has made available around 50 days' worth of oil consumption from its reserves, which total enough for 230 days. The country has also requested the International Energy Agency to consider a coordinated release of additional reserves. The Ministry of Economy, Trade and Industry (METI) has indicated that the situation is under continuous assessment, with Deputy Director-General Narumi Hosokawa confirming that the ministry is monitoring developments closely.
Impact on Domestic Oil Supply
The ongoing disruptions have led to a significant reduction in crude oil availability, prompting Japanese refineries to cut their utilization rates to 67.7% of designed capacity, the lowest since June 2025. To mitigate the energy supply crisis, Japan has initiated several measures, including seeking crude oil from non-Middle Eastern sources, implementing gasoline subsidies, and increasing coal-fired power generation to lessen reliance on liquefied natural gas (LNG), which has also been affected by the closure of the Strait of Hormuz.
Despite securing sufficient crude oil and naphtha for the country overall, METI has reported regional supply imbalances and distribution bottlenecks. Industry groups, particularly from the medical sector, have expressed concerns about potential shortages of naphtha, a critical raw material for medical supplies. They have urged the government to ensure a steady supply to prevent a looming "naphtha crisis."
Broader Implications
The potential additional release of oil reserves reflects Japan's ongoing concerns regarding energy security amid escalating tensions in the Middle East. The situation has been exacerbated by the recent U.S.-Iran ceasefire, which has not yet restored safe navigation through the Strait of Hormuz. As Japan prepares for a possible further release, it is also exploring alternative routes for crude oil transportation to bypass the strait.
Official Statements & Responses
Japan's METI continues to evaluate the energy supply situation, with officials emphasizing the need for coordinated international efforts to stabilize oil supplies. The ministry's latest assessments highlight the importance of addressing both immediate supply challenges and longer-term energy security concerns.
Conflicting Reports & Gaps
While Japan has released approximately 80 million barrels of oil since March 16, some sources indicate that this release is equivalent to 45 days of consumption, suggesting discrepancies in reporting the total volume released. Additionally, there are varying forecasts regarding the expected decline in crude oil imports, with estimates indicating that imports in May could be around 60% of the volume from the same period last year.
Verbatim Quotes
- “An unnamed official was quoted as saying, As a resumption of safe navigation in the Strait of Hormuz is uncertain, an additional release of oil is under consideration to stabilise supply.” — Unnamed Official
- “Asked about the report, deputy director-general for immediate crisis management at the Ministry of Economy, Trade and Industry (METI) Narumi Hosokawa told reporters the ministry continues to examine the situation.” — Narumi Hosokawa, Deputy Director-General, METI
- “Industry insiders warn that if the current situation persists, Japan could face a "naphtha crisis" by June, endangering the health of a large number of patients.” — Industry Insider
