Japan to release oil reserves in response to Middle East tensions

Japanese Prime Minister Sanae Takaichi said on Wednesday that Japan plans to release oil from its reserves as early as next Monday in response to rising energy risks linked to tensions in the Middle East, according to Nikkei Asia.

Takaichi said the move would be carried out as an independent initiative rather than as part of a coordinated international release. Japan will release oil equivalent to 15 days of private-sector reserves along with about one month of national reserves.

The government hopes the measure will increase supply in the market and help curb rising crude prices.

Global oil markets have been rattled by fears that escalating conflict in the Middle East could disrupt shipments from the region. Crude futures recently climbed above $119 per barrel, the highest level since June 2022.

The average retail gasoline price in Japan rose to 161.8 yen (about $1.02) per liter as of Monday, rising for the fourth straight week and surpassing 160 yen for the first time in three months, the Ministry of Economy, Trade and Industry said Wednesday.

Japan remains heavily dependent on Middle Eastern energy supplies. More than 90 percent of its crude oil imports come from the region, with most shipments passing through the Strait of Hormuz, a key maritime route that has become a focus of geopolitical tension.

To guard against supply disruptions, Japan maintains both government and private-sector oil stockpiles, a system established after the 1973 oil crisis to strengthen the country's energy security. In principle, the reserves can be released only when there is a risk of a major interruption to oil supplies.