Japan to Release 80 Million Barrels From Oil Reserves amid War-Driven Supply Shock

Japan will begin releasing oil from its strategic reserves starting Monday in an effort to cushion the impact of supply disruptions caused by the ongoing conflict involving United States, Israel, and Iran, government officials said.

Facing rising gasoline prices and concerns over energy supply, Tokyo announced plans to withdraw a record 80 million barrels of oil from its reserves, equivalent to roughly 45 days of domestic supply. Japanese authorities have instructed domestic refineries to utilize the released crude, a move expected to reduce national reserves by about 17% while stabilizing local fuel supplies.

The supply shock has been largely driven by disruptions to shipments through the Strait of Hormuz, a critical global energy corridor through which a large share of the world’s oil exports pass.

The move comes as part of broader international discussions coordinated by the International Energy Agency to potentially release 400 million barrels from global strategic reserves to ease pressure on oil markets and mitigate price volatility. However, the exact portion Japan will contribute to the coordinated global release has not yet been clarified.

Ryosei Akazawa, Japan’s Minister of Economy, Trade and Industry, said the country is also seeking additional energy supplies from several regions, including the United States, Central Asia, South America, and Gulf producers capable of bypassing the Strait of Hormuz shipping route.

Meanwhile, Lee Zeldin, head of the United States Environmental Protection Agency, told Reuters that the Middle East conflict underscores the importance of diversifying energy sources.

“When you see conflict in the Middle East, it reminds you that crude oil shipped from Alaska to Japan has never faced a successful terrorist attack,” Zeldin said, emphasizing the reliability of alternative supply routes from the Pacific region.

Japan currently imports only about 4% of its oil from the United States, having significantly reduced purchases from Russia following the Russian invasion of Ukraine.

Energy analysts say the reserve release is primarily intended to buy time rather than fully offset potential long-term disruptions in global oil flows.

Yuri Humber, CEO of Tokyo-based Yuri Group, said strategic reserves can help stabilize supply and prices in the short term but cannot fully compensate for a prolonged disruption in the Strait of Hormuz.

Japan established its strategic petroleum reserve system in 1978, following the 1973 oil crisis triggered by the Arab oil embargo. Today, the country maintains oil stockpiles sufficient to cover about 254 days of consumption, although it still relies on the Middle East for roughly 90% of its oil imports.

According to the Ministry of Economy, Trade and Industry, the drawdown will begin with the release of oil equivalent to 15 days of private-sector consumption, followed by about one month of government-held reserves later this month, as authorities move to stabilize energy markets and secure domestic fuel supplies.