The Japanese government has commenced the release of state-held oil reserves to stabilize domestic supplies in response to surging crude oil prices and international tensions, particularly the ongoing U.S.-Israeli war with Iran and Tehran's effective blockade of the Strait of Hormuz following attacks on Iran by the United States and Israel on February 28 [1][2]. This release is part of the largest-ever drawdown of reserves in Japan, with about 80 million barrels of oil—equivalent to 45 days of domestic consumption and 1.8 times the amount released after the 2011 earthquake and tsunami—being released from the national stockpile stored at 11 locations across the country [2]. The government began the release with oil from the Kikuma base in Ehime Prefecture, and plans to release oil from eight more bases by the end of April, including Shirahima in Kitakyushu, Fukuoka Prefecture, and further releases from Nagasaki and Kagoshima prefectures in early April [2]. The released oil, mostly crude to be refined into gasoline and diesel, will be sold for around 540 billion yen ($3.4 billion) to four wholesalers, including Taiyo Oil and Eneos Corp [2]. In addition to state and private sector reserves, oil stored jointly by three Middle Eastern producers in tanks in Japan will be tapped for the first time, with five days' worth set for release [2]. As of the end of 2025, Japan's oil stockpile stood at approximately 470 million barrels, equivalent to 254 days of domestic consumption, with 146 days held by the government, 101 days by the private sector, and the remainder jointly stored by oil-producing countries [2]. The Ministry of Economy, Trade and Industry stated that the release will be conducted in stages over several weeks to maintain stable supply and minimize impact on citizens and industry, while also coordinating internationally [1]. Energy experts noted that the release is expected to stabilize domestic supply and curb price spikes in the short term, but warned that global supply-demand imbalances and heightened geopolitical risks could still lead to price volatility [1]. The average retail price of gasoline in Japan reached a record-high 190.80 yen per liter in mid-March, prompting the government to resume subsidies to lower prices [2]. The release announcement led to a temporary decline in WTI crude prices, though medium- to long-term price trends remain uncertain [1]. The chemical sector is also experiencing difficulties in procuring naphtha, a key input for plastics and synthetic fibers, due to reduced tanker arrivals through the Strait of Hormuz [2]. The government plans to continue considering additional measures and international cooperation to ensure stable energy supply [1][2].
CONCLUSION
Japan's unprecedented release of oil reserves aims to stabilize domestic supply and curb record-high prices amid severe disruptions from Middle East tensions. While the immediate market reaction included a temporary drop in crude prices, experts and officials caution that ongoing geopolitical risks may sustain volatility. The government remains committed to further measures and international coordination to secure energy stability.