In a historic energy policy move, Japan is set to begin its biggest-ever oil release from national reserves this week, as Prime Minister Sanae Takaichi responds to fears of supply disruptions triggered by the escalating US-Israel conflict with Iran. The release involves around 80 million barrels of stockpiled crude being made available to domestic refiners. This extraordinary intervention underscores just how exposed Japan remains to instability in the oil-rich Middle East.
The conflict has raised serious alarms about the safety of tanker shipping through the Strait of Hormuz, the narrow waterway through which a large portion of Japan’s imported oil must pass. Japan relies on the Middle East for over 90% of its crude oil needs, a dependency that leaves the nation with little room to maneuver when tensions in the region spike. The government’s swift action reflects lessons learned from past energy crises that hit Japan hard.
The volume of oil being released dwarfs previous emergency drawdowns, amounting to 1.8 times what was released following the catastrophic 2011 earthquake and tsunami that crippled the Fukushima nuclear plant. Japan currently holds total reserves of approximately 470 million barrels, representing around 254 days of domestic consumption. The 80 million barrels being released covers 45 days of demand — a substantial but carefully calculated intervention.
Alongside the reserve release, the government has capped gasoline prices at roughly ¥170 per litre through newly introduced subsidies, after prices hit a record high of ¥190.8 per litre. These subsidy levels will be reassessed on a weekly basis. The government is clearly working to prevent the energy crisis from translating directly into a cost-of-living crisis for ordinary Japanese households.
Prime Minister Takaichi has also been navigating complex diplomatic pressures, having declined a request from US President Donald Trump to send Japanese naval forces to the Strait of Hormuz. She cited Japan’s postwar constitution as the basis for her refusal, while affirming Tokyo’s commitment to diplomatic solutions. Japan’s strategy remains one of economic resilience combined with active diplomacy rather than military engagement.