Strait of Hormuz tensions push Japan to diversify oil imports

Japan is exploring alternative energy supply routes as uncertainty continues around the Strait of Hormuz.

Prime Minister Sanae Takaichi said on Friday that the government is making every possible effort to secure crude oil from sources that do not depend on the strait, News.Az reports, citing Anadolu Agency.

She added that Japan should be able to secure sufficient oil supplies to last beyond this year.

Sanae Takaichi said the government is also planning to release an additional 20 days’ worth of oil from its national reserves next month or later in order to help stabilize supply conditions.

The comments were made during a meeting held at the Prime Minister’s Office with cabinet ministers focused on oil supply issues.

During the meeting, Takaichi also instructed Industry Minister Ryosei Akazawa to address broader supply chain challenges, including concerns over potential shortages of paint thinners used in construction work and automobile maintenance.

Ryosei Akazawa was also directed to take steps on these issues as part of efforts to strengthen supply stability across multiple sectors.

In addition, the prime minister called for type-A heavy fuel oil, which is used in the production of light diesel fuel, to be sold directly to businesses from wholesalers, bypassing distributors.

Takaichi also stated that Japan has received requests for assistance from like-minded countries regarding oil procurement, and that each of these requests is currently being reviewed individually.

Vessel traffic through the Strait of Hormuz remains significantly below normal levels, restricting the flow of crude oil and liquefied natural gas (LNG) into global markets, despite a recent two-week ceasefire between the United States, Israel, and Iran.

The strait is typically responsible for handling around 20% of global oil and LNG trade, meaning that any disruption to its operations is considered a major factor contributing to volatility in global energy markets.

News.Az 

By Nijat Babayev