Japan will begin releasing oil from its strategic petroleum reserves as early as Monday, Prime Minister Sanae Takaichi announced, in a direct response to supply concerns sparked by the conflict in the Middle East. The move aims to stabilise domestic gasoline prices and ease pressure on the international energy market.
Speaking to reporters on Wednesday, Takaichi stated that Japan is proceeding with the release without awaiting a final agreement for a coordinated action with the International Energy Agency (IEA). “Japan has decided to take the lead… by releasing strategic reserves as early as the 16th of this month,” she said. This unilateral step underscores Tokyo’s urgency to shield its economy from escalating energy costs and potential supply chain disruptions.
The decision follows ongoing discussions among G7 nations and IEA members regarding a joint release of crude oil to counter price surges. However, Japan’s heavy reliance on Middle Eastern imports—which account for over 90% of its crude oil—leaves it particularly vulnerable. Takaichi highlighted that numerous tankers are currently unable to transit the Strait of Hormuz, a critical chokepoint, foreshadowing a “significant” drop in oil imports expected from late October. “Given Japan’s exceptionally high dependence on the Middle East… we plan to utilise Japan’s strategic petroleum reserves,” she explained.
While acting independently for now, the government will maintain coordination with the G7 and IEA to prevent any supply shortfalls for refined products like gasoline. A key domestic objective is to keep average gasoline prices around 170 yen ($1.07) per litre, marginally below last year’s average of 178 yen.
The release underscores broader global efforts to fortify energy security amid geopolitical instability. By tapping its reserves, Japan seeks to immediately augment market supply, mitigate price volatility, and set a precedent for swift national action within international frameworks. The effectiveness of this measure, alongside any subsequent IEA-coordinated release, will be closely monitored as the situation in the Middle East evolves.
