Japan to Release Extra Oil Reserves Amid Middle East Uncertainty

Dow Jones04-10
 

By Megumi Fujikawa

 

TOKYO--Japan plans to release an additional 20 days' worth of oil reserves starting in early May, Prime Minister Sanae Takaichi said Friday as the government tries to stabilize energy prices amid volatility caused by war in the Middle East.

While the U.S. and Iran recently agreed to a conditional cease-fire, concerns remain surrounding the Strait of Hormuz, a critical route for global energy shipments that has been largely blocked following the conflict.

Some vessels have managed to transit the waterway, but flows remain at a virtual standstill, tightening supplies not only of energy but other key commodities like fertilizers.

Japan is particularly vulnerable to disruptions in the Middle East, as it relies on the region for more than 90% of its crude oil imports. To ease the blow to businesses and consumers, the Takaichi administration has been seeking to diversify suppliers and shipping routes.

The prime minister said Japan expects to secure more than half of its oil procurement through alternative sources in May compared to the previous year's figures.

"We are on track to secure Japan's oil supply well into next year," Takaichi said.

As of April 6, national oil reserves equaled 143 days of domestic demand, while refiners had 81 days' worth of private stockpiles.

Despite relatively abundant oil inventories, Takaichi acknowledged concerns over the supply of oil-related products and instructed her ministers to address logistical bottlenecks, while considering priorities such as medical needs.

"We need to move faster and stay more alert than ever to prevent any negative impact on the public's daily life and our economy," she said.

 

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

 

(END) Dow Jones Newswires

April 10, 2026 02:24 ET (06:24 GMT)

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