Faced with mounting threats to its energy supply, Japan has unveiled plans to begin its biggest-ever oil release from strategic reserves, with Prime Minister Sanae Takaichi making the announcement publicly this week. The government will distribute roughly 80 million barrels of stockpiled crude — equivalent to 45 days of domestic demand — to refiners beginning Thursday. The move is being driven by disruptions to the Strait of Hormuz caused by the US-Israel war on Iran.
Japan’s geographic and economic reality makes it uniquely vulnerable to Middle East instability, importing over 90% of its oil from the region. Any sustained closure of the Strait of Hormuz could rapidly translate into energy shortages for Japanese industry and households. The government has responded with both reserve releases and policy tools to manage the impact.
The scope of the release surpasses Japan’s previous record emergency drawdown — set in the aftermath of the 2011 Fukushima disaster — by 1.8 times. Japan currently holds 470 million barrels of oil reserves, representing 254 days of domestic consumption. The government last week also unlocked 15 days’ worth of private-sector oil stockpiles to supplement the state release.
Gasoline price subsidies have been introduced to cap pump prices at around ¥170 per litre, following a record retail high of ¥190.8. Consumer anxiety has also surfaced around toilet paper, with social media speculation prompting the trade ministry to publicly clarify that supply is stable. The Japan Household Paper Industry Association confirmed that 97% of toilet paper is manufactured domestically and that capacity can be increased if needed.
Despite US pressure to contribute naval forces to the region, Takaichi held firm, citing Japan’s postwar constitutional limitations during her summit with Trump in Washington. Japan will instead concentrate on diplomatic engagement with relevant nations to encourage de-escalation. The government is committed to pursuing every available tool to protect its citizens and economy from the fallout of the crisis.