Prime Minister Sanae Takaichi announced that Japan can secure enough alternative oil supplies to last into 2027, addressing concerns over potential disruptions to energy imports from the Middle East due to the U.S.-Israeli war with Iran and the de facto closure of the Strait of Hormuz [1]. Japan relies on the Middle East for more than 90 percent of its crude oil imports, most of which pass through the strait, a critical route for global energy shipments [1].
Takaichi stated that, thanks to progress in securing alternative supplies, Japan has clear prospects of ensuring oil supply beyond the end of the year while minimizing releases from reserves [1]. Japan currently holds about eight months' worth of oil reserves and has increased procurement from Middle Eastern sources not passing through the strait by more than 20 percent in April compared with 2025 levels. Additionally, imports from the United States will be quadrupled from May compared with a year earlier [1].
Despite rising energy prices and calls for a supplementary budget, Takaichi said she does not believe one is currently needed, noting that measures to aid households can be funded from the budget's reserve funds [1]. Pressure is mounting within the ruling Liberal Democratic Party and business circles to urge restrained use of oil, given concerns that the closure of the major crude shipping route could be prolonged [1]. Takaichi emphasized that the administration will remain flexible and respond as appropriate, without ruling out any options, including urging the public to limit energy usage [1].
Takaichi also held phone talks with United Arab Emirates President Mohammed bin Zayed al-Nahyan, agreeing to deepen cooperation and work toward de-escalating the conflict in the Middle East and ensuring stability in the strait. Japan procures crude oil from the UAE [1]. Industry minister Ryosei Akazawa reported that a crude oil tanker from the Middle East arrived in Japan on Sunday, though he did not disclose its origin or other details. Akazawa confirmed that Japan has secured needed volumes through releases from petroleum reserves and other means, but declined to estimate future procurement volumes. He also suggested addressing cases where fuel has not reached the fisheries and agricultural sectors [1].
CONCLUSION
Japan has taken significant steps to secure alternative oil supplies amid concerns over disruptions from the Middle East, with increased imports from both the region and the United States. While the government remains cautious and flexible in its response, current measures appear sufficient to avoid immediate supply shortages. The market impact is medium, as Japan's actions help mitigate risks but ongoing geopolitical tensions continue to pose challenges.