Japan Deploys Emergency Oil Reserves Amid Iran Conflict Pressure on Supply

TOKYO — The Japanese government has begun releasing a portion of its strategic oil reserves amid escalating disruptions to global energy supply caused by conflict in the Middle East.

This action comes as world oil prices surge and concerns mount over energy supply stability for importing nations, particularly in Asia.

The decision was announced following escalation of the Iran-centred conflict, which has impacted major global energy shipping routes, including the Strait of Hormuz, a vital passage for global oil trade.

Japanese Prime Minister Sanae Takaichi stated that the country will release approximately 80 million barrels of oil from strategic reserves. This quantity equates to around 45 days of domestic supply, in response to global energy supply disruptions triggered by Middle Eastern conflict.

The release will be implemented in stages. The Japanese government plans first to release private sector oil reserves equivalent to 15 days of consumption, followed by release of government reserves for approximately one month at the end of March 2026.

Data shows Japan relies on approximately 95 per cent of its oil imports from the region.

Disruptions to oil shipping routes, particularly through the Strait of Hormuz, have rendered Japan’s energy supply chain highly vulnerable to geopolitical conflict.

Additionally, Japan’s overall emergency oil reserves amount to approximately 254 days of domestic consumption, or around 470 million barrels, providing room for the government to stabilise short-term supply.

Accordingly, the government has set a maximum price cap of 170 yen, approximately 18,110 rupiahs, through subsidies and budget allocations already prepared.

Energy companies such as Eneos Holdings are also reported to be planning significant increases to petrol wholesale prices, reflecting pressure from crude oil import costs.

This situation reflects the direct impact of geopolitical upheaval on energy inflation in major oil-importing nations such as Japan.