Japan is set to execute the biggest-ever release of oil from its national strategic stockpile, Prime Minister Sanae Takaichi confirmed this week, as the country prepares for potential energy shortages linked to the US-Israel military offensive against Iran. Around 80 million barrels will be channeled to domestic refiners, covering the equivalent of 45 days of the country’s total oil demand. The announcement signals just how serious Tokyo views the threat to its energy supply chain.
As a resource-poor island nation with the world’s third-largest economy, Japan has always been acutely aware of its energy vulnerability. The country sources over 90% of its crude oil from Middle Eastern producers, with shipments routed through the Strait of Hormuz. Any sustained blockage of this passage would send shockwaves through Japan’s industrial base, transportation network, and consumer economy.
The oil being released from state-owned reserves is nearly double the volume deployed after the March 2011 Fukushima disaster, when earthquake damage led to the closure of Japan’s nuclear power plants and triggered an energy emergency. Japan’s overall reserves at the end of last year stood at approximately 470 million barrels, equivalent to about 254 days of consumption — a stockpile built up precisely for moments like these.
To prevent sky-high global oil prices from directly hitting consumers, the government has introduced subsidies that cap gasoline at approximately ¥170 per litre, down from a recent record of ¥190.8. This price support mechanism will be reviewed weekly, allowing authorities to fine-tune the level of intervention based on real-time market data. Officials hope to keep inflation in check while supply disruptions continue.
Prime Minister Takaichi has made clear that Japan’s response will be diplomatic rather than military, declining Trump’s suggestion that Japanese naval vessels patrol the Strait of Hormuz. She cited Japan’s pacifist constitution as an insurmountable barrier to such deployment. Tokyo is instead pursuing intensive diplomacy with regional partners, aiming to help restore stability through dialogue rather than deterrence.