Backed by one of the world’s largest strategic petroleum stockpiles — approximately 470 million barrels, equivalent to 254 days of domestic consumption — Japan has launched the biggest-ever release of oil from its national reserves, deploying 80 million barrels to domestic refiners beginning this Thursday. Prime Minister Sanae Takaichi announced the move in response to disruptions to the Strait of Hormuz caused by the US-Israel conflict with Iran, which threatens the oil supply chains that Japan’s economy critically depends upon. The sheer depth of Japan’s reserve base has enabled it to respond with both speed and scale.
The 80 million barrel deployment is 1.8 times the volume released following the 2011 Fukushima nuclear disaster, setting a new benchmark for emergency petroleum reserve utilization in Japan. Japan imports more than 90% of its crude from the Middle East, meaning the current Hormuz disruptions strike at the very core of the country’s energy supply system. The reserves being deployed were built up precisely to protect Japan in situations like this one.
Alongside the new state reserve release, private-sector reserves equivalent to 15 days of supply had already been approved for deployment in the preceding week. The combination of public and private reserve activations represents a coordinated, whole-of-market response to the supply threat. Energy officials are monitoring the situation continuously and have signaled readiness to take further action if required.
Government subsidies have been introduced to cap gasoline at approximately ¥170 per litre, following prices reaching a record ¥190.8. These subsidies will be reviewed weekly and adjusted in line with oil market movements. The price stabilization measures are intended to limit the impact of the global energy crisis on Japanese consumers and businesses.
Takaichi has handled the diplomatic dimensions of the crisis with characteristic firmness, declining Trump’s request for Japanese naval deployment to Hormuz while pledging robust multilateral diplomacy. She has described Middle East stability as vital for Japan and the world, committing to sustained engagement with relevant countries. Japan’s enormous reserve base, combined with its diplomatic activity, positions it as well as possible to weather the storm.