The slowdown in oil tanker traffic through the Strait of Hormuz caused by the US-Israel conflict with Iran is hitting Asian energy markets hard, with Japan announcing the biggest-ever release from its national oil reserves — approximately 80 million barrels to domestic refiners from Thursday — as the first and most immediate of the region’s affected major economies to respond. Prime Minister Sanae Takaichi confirmed the deployment, reflecting Japan’s singular exposure to Hormuz disruptions given that over 90% of its crude oil imports come from the Middle East. Japan’s swift and large-scale response sets a benchmark for regional energy crisis management.
The 80 million barrel release — equivalent to 45 days of national consumption and 1.8 times the previous record deployment — is backed by Japan’s total petroleum reserves of approximately 470 million barrels, representing 254 days of domestic demand. The depth of Japan’s stockpile has enabled it to respond with both speed and scale, absorbing the initial shock of the tanker traffic slowdown without allowing domestic supply to be affected. Energy officials say the release is sized to maintain supply stability while the broader situation is assessed.
Gasoline prices had climbed to a record ¥190.8 per litre before government subsidies were introduced to cap costs at approximately ¥170 per litre. These subsidies will be reviewed weekly to ensure continued alignment with market conditions. Consumer protection from the price shock is being matched by active management of social media-driven fears about household goods shortages, with officials and industry groups reassuring the public about the security of domestic supply chains.
Takaichi has led Japan’s diplomatic response as well as its economic one, declining Trump’s call for Japanese naval involvement in the Hormuz area while pledging intensive multilateral diplomacy. Her constitutional-based refusal of the request was consistent with Japan’s longstanding post-war foreign policy framework. Japan’s economic and diplomatic response will be closely watched by other Asian nations facing similar exposure to the Hormuz disruption.
The speed and scale of Japan’s response — deploying more oil reserves than ever before while maintaining diplomatic restraint — demonstrates a mature and well-prepared national system. Japan has spent decades building both the physical reserves and the institutional frameworks needed to manage exactly this kind of crisis. The outcome will depend on how the Middle East conflict evolves, but Japan has done what it can to protect itself.