Japan has launched its largest-ever drawdown of strategic oil reserves, with Prime Minister Sanae Takaichi announcing the release of approximately 80 million barrels to domestic refiners. The move comes as ongoing conflict in the Middle East threatens to disrupt crucial energy supply routes that Japan depends on heavily. Takaichi confirmed the state-owned reserve release would begin on Thursday, describing it as an urgent national response to a worsening global energy situation.
Japan imports more than 90% of its crude oil from the Middle East, making it one of the world’s most energy-vulnerable major economies. The Strait of Hormuz, through which a massive share of global oil flows, has seen disrupted tanker traffic due to the US-Israel military conflict with Iran. Any prolonged closure of this critical waterway would have severe consequences for Japanese industry and consumers alike.
The 80 million barrels being released is equivalent to 45 days of Japan’s total domestic oil consumption. To put this in perspective, the release is 1.8 times larger than the emergency oil drawdown conducted after the 2011 Fukushima nuclear disaster. At that time, Japan temporarily shut down all its nuclear plants, creating an acute energy shortfall that required significant reserve deployment.
The government has also introduced fuel subsidies to cap gasoline prices at around ¥170 per litre after average retail prices soared to a record ¥190.8 per litre. These subsidies will be reviewed weekly based on prevailing oil market conditions. The dual strategy of releasing reserves and capping prices reflects the government’s determination to shield consumers from the worst effects of the energy crunch.
Looking ahead, Japan faces an uncertain energy landscape as the Middle East conflict shows no clear signs of resolution. Takaichi has pledged continued diplomatic engagement with regional partners while ruling out any military deployment due to constitutional constraints. Japan’s vast reserve stockpile of 470 million barrels — equivalent to 254 days of consumption — provides a meaningful buffer, but the government knows that sustained disruption would test even this substantial cushion.