Japan is making history in its energy policy, with Prime Minister Sanae Takaichi announcing the country will begin its biggest-ever oil release from strategic reserves this Thursday. Around 80 million barrels — the equivalent of 45 days of domestic demand — will be made available to domestic refiners. The move is designed to insulate Japan’s economy from the deepening disruptions caused by the US-Israel war on Iran.
Japan imports more than 90% of its crude oil from the Middle East, and any meaningful interruption to Strait of Hormuz shipping would quickly translate into supply shortfalls across the country. The government previously approved the release of 15 days of private-sector oil reserves, and the new state-level release adds considerably to that response. Together, these measures represent a sweeping mobilization of Japan’s energy safety net.
Surpassing the Fukushima emergency drawdown by 1.8 times, this is the largest oil reserve release in Japan’s history. Japan’s total stockpile currently stands at around 470 million barrels, covering 254 days of domestic consumption. The government is working to ensure that refiners have sufficient crude to keep fuel flowing across the country during the period of global uncertainty.
Fuel subsidies have been introduced to bring gasoline prices down from a record ¥190.8 per litre to approximately ¥170, with the subsidy reviewed weekly in line with market conditions. Social media anxiety about household goods shortages, particularly toilet paper, has prompted government ministries and industry groups to publicly dispel misinformation. Japan’s paper industry has confirmed that 97% of its toilet paper output is sourced and manufactured domestically, with no vulnerability to Middle East supply chain disruptions.
Japan has taken a non-military diplomatic approach to the crisis, declining to send naval forces to the Strait of Hormuz as requested by President Trump. Prime Minister Takaichi invoked Japan’s postwar constitution as the basis for her decision during their Washington meeting. Japan will continue its diplomatic engagement in the hope of contributing to a peaceful and stable resolution of the conflict.