Japan to release oil from state reserves Thursday as Iran war disrupts supplies
Japanese Prime Minister Sanae Takaichi announced Tuesday that Tokyo will start releasing oil from state reserves on Thursday amid concerns over supply disruptions from the US-Israeli war with Iran. Japan began tapping private-sector stockpiles last week and will also access joint reserves with Middle Eastern producers.
Japanese Prime Minister Sanae Takaichi said on Tuesday that Tokyo will start releasing oil from state reserves on Thursday, as concerns over supply disruptions escalate amid the ongoing US-Israeli war against Iran, local media reported. The measure, aimed at cushioning the impact of the tensions in the Middle East on the Japanese economy, comes after Japan started releasing oil from private-sector stockpiles last week, Tokyo-based Kyodo News reported.
Joint reserves tapped
Joint oil reserves of oil-producing Middle Eastern nations currently stored in Japan will begin to be tapped by the end of this month, the premier said. "The peace and stability of the Middle East are extremely important for Japan and the international community," she added. Tokyo, she went on to say, will continue to "make all necessary diplomatic efforts in close coordination with related countries."
Summit commitment
Takaichi said that during their summit in Washington last Thursday, she and US President Donald Trump affirmed the importance of ensuring stable energy supplies by securing safe navigation in the Strait of Hormuz, a key global oil transportation route, which has been effectively closed by Iran.
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Conflict context
Hostilities in the region have escalated since the US and Israeli strikes on Iran began on Feb. 28, killing over 1,340 people according to Iranian authorities, including former Supreme Leader Ayatollah Ali Khamenei. Iran has retaliated with repeated drone and missile strikes targeting Israel and Gulf countries hosting US military assets. The Strait of Hormuz normally handles about 20 million barrels of oil daily, and its closure has pushed global prices above $116 per barrel.
Energy vulnerability
Japan depends on the Middle East for more than 90% of its energy imports, making it particularly vulnerable to supply disruptions. The strategic reserve releases aim to stabilize domestic markets and maintain economic stability amid the ongoing regional turmoil.
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