In a historic move, Japan has announced it will begin its largest-ever release of strategic oil reserves to protect its economy from the fallout of Middle East conflict. Prime Minister Sanae Takaichi confirmed that around 80 million barrels of government-held crude oil will be distributed to domestic refiners. The decision follows growing fears that the US-Israel military campaign against Iran could shut down the Strait of Hormuz indefinitely. This single waterway handles more than 90% of Japan’s crude oil imports, making its closure a national economic emergency.
Japan’s resource poverty makes it uniquely exposed to global energy shocks. The country imports the vast majority of its oil, gas, and raw materials, and any prolonged blockage of Middle Eastern shipping lanes would hit its economy hard. Takaichi has been navigating this challenge while also resisting pressure from US President Donald Trump to send Japanese naval forces to the region. She cited Japan’s postwar constitution as the legal barrier preventing such a deployment.
The total oil being released — 80 million barrels — surpasses previous emergency releases including those following the Fukushima nuclear disaster in 2011. At that time, Japan released a significantly smaller volume after all nuclear plants were temporarily shut down. The current release represents 45 full days of the country’s domestic oil demand. Japan still holds substantial reserves of approximately 470 million barrels, or 254 days’ worth of supply.
Gasoline subsidies have also been rolled out, capping retail prices at ¥170 per litre after they hit a record ¥190.8. Weekly reviews will allow the government to adjust the subsidies in line with oil price movements. These fiscal measures reflect the scale of Tokyo’s concern about consumer and industrial costs. Keeping energy affordable is seen as essential to preventing a broader economic slowdown.
Social media has amplified public anxiety, with some consumers rushing to buy toilet paper and other household staples. The trade ministry stepped in to clarify that Japan’s toilet paper supply is almost entirely domestic and unaffected by oil import disruptions. Industry associations backed this message, confirming ample production capacity. Authorities are working to prevent a repeat of the panic-buying episodes that struck during both Covid-19 and the 1973 oil shock.