Economy

Japan’s Govt Says No Immediate Impact on Oil Supply; No Releases of Stockpiled Oil Planned For Now

Courtesy of the Japan Organization for Metals and Energy Security
Mutsu-Ogawara National Petroleum Stockpiling Base in Rokkasho, Aomori Prefecture

The Yomiuri Shimbun

15:31 JST, March 4, 2026

The closure of the Strait of Hormuz has sparked concerns in Japan, as it relies on the Middle East for over 90% of its crude oil imports.

The government has said there will be no immediate disruption in oil supply due to the nation’s oil stockpiles. There are no plans to release stockpiled oil at this time, but there may be releases should the Iran conflict become protracted.

Economy, Trade and Industry Minister Ryosei Akazawa said at a press conference after a Cabinet meeting on Tuesday, “The [purpose of stockpile releases] is not to suppress prices, but to ensure a stable supply of oil in the event of shortages.”

Under the Oil Stockpiling Law, Japan held a total of 254 days’ worth of oil in stockpiles as of the end of December. The law was enacted in 1975 following the 1973 oil crisis. It requires private businesses to maintain stockpiles above a specified level and allows for the release of stockpiled oil when there is a risk of disruption to the domestic supply due to insufficient imports or the impact of a disaster.

The stockpiles are divided into three categories: state stockpiles – currently 146 days’ worth – mostly held by the government in the form of crude oil; private sector stockpiles — 101 days’ worth — often in the form of petroleum products by refiners and other businesses; and joint stockpiles — seven days’ worth — held domestically in cooperation with oil-producing nations.

Oil stockpile releases may also occur when concerns over the global oil supply arise. In 2022, following the start of Russia’s aggression against Ukraine, the Japanese government coordinated with International Energy Agency (IEA) member countries and conducted its first-ever release of state stockpiles.

“It is necessary to prepare for the worst-case scenario, engage in discussions with the IEA and various countries and respond in a collaborative manner,” said Ken Koyama, chief economist at the Institute of Energy Economics, Japan.

The Economy, Trade and Industry Ministry on Monday set up a response headquarters to the situation regarding Iran. It is assessing the impact on energy supplies and oil market trends while considering countermeasures.