Inpex, Japan's largest energy resource development company, has experienced a halt in exports from its interests in the United Arab Emirates following the de facto closure of the Strait of Hormuz, which was triggered by U.S.-Israeli attacks on Iran [1]. In response to this disruption, Inpex President and CEO Takayuki Ueda stated that the company is prioritizing crude oil sales to Japanese refiners to ensure domestic supply amid heightened geopolitical risks [1].
The closure of the Strait of Hormuz has significantly disrupted the flow of crude oil from the region, affecting not only Inpex but also Japan’s broader energy supply chain [1]. Financial and logistical repercussions are substantial, as Hormuz is a critical pathway for oil exports from the UAE. To mitigate these risks, Inpex has diverted Australian LPG and condensate to supply Japan and is assessing alternative supply routes, as well as considering increased investment in Southeast Asia and Australia to secure energy resources [1].
Ueda acknowledged that the situation has led to a tightening of oil supply, with buyers turning to U.S. crude oil as the Iran conflict constrains Middle Eastern supply [1]. Japanese companies are facing a naphtha crunch despite government assurances, and energy market volatility is expected to persist as long as tensions remain in the Gulf [1]. Inpex is closely monitoring price movements and is prepared to adjust trading strategies according to market sentiment and supply-demand dynamics [1]. The company remains committed to supporting Japan’s energy security by maintaining steady crude oil flows and exploring new investment opportunities outside the Middle East [1].
CONCLUSION
The closure of the Strait of Hormuz has created significant challenges for Inpex and Japan's energy supply chain, prompting the company to prioritize domestic refiners and seek alternative supply routes. Market volatility and supply tightness are expected to continue as geopolitical tensions persist, with Inpex actively adapting its strategies to ensure energy security for Japan.