The Japanese government has announced plans to release additional oil reserves equivalent to around 20 days’ worth starting from May 1. This decision comes amidst concerns regarding the reopening of the vital Strait of Hormuz, a key maritime route for global oil trade. Japan had earlier released 50 days’ worth of oil reserves to stabilize its energy supply following tensions in West Asia.
Tensions persist in the Strait of Hormuz, a crucial passage connecting the Persian Gulf to the Arabian Sea, through which a significant portion of the world’s oil trade flows. The upcoming release of 5.8 million kiloliters of oil, valued at 540 billion yen (USD 3.4 billion), aims to address Japan’s heavy reliance on West Asia for over 90% of its crude oil imports, most of which traverse the strait.
Japanese Prime Minister Sanae Takaichi recently engaged in a telephonic discussion with Saudi Arabia’s Crown Prince Mohammed bin Salman bin Abdulaziz Al-Saud. Takaichi expressed solidarity with Saudi Arabia in the face of attacks from Iran and emphasized the importance of maintaining a ceasefire and de-escalating tensions in the region. She also highlighted the need for the US and Iran to reach a conclusive agreement through dialogue, with Japan supporting diplomatic efforts towards this goal.
Prince Mohammed affirmed Saudi Arabia’s commitment to ensuring energy supply to markets like Japan and pledged continued cooperation to stabilize the situation, including safeguarding navigation in the Strait of Hormuz. Japan, appreciative of Saudi Arabia’s ongoing crude oil supply via Yanbu Port, sought further collaboration to enhance energy provision to Japan.
