Japan begins release of oil stockpile amid escalating Mideast tensions

ISTANBUL

Japan on Monday began to release oil from its reserves to mitigate supply concerns and stabilize the distribution of petroleum products amid the ongoing US-Israeli war on Iran, local media reported.

Japan is initially freeing up 15 days' worth of reserves held by the private sector, with a month's worth of state-held oil to follow, Tokyo-based Kyodo News reported.

This marks the first use of the country’s fuel reserves since the Russia-Ukraine war began in 2022.

The release was decided as Japan's crude oil imports are expected to drop significantly from late March onwards due to the effective closure of the Strait of Hormuz, one of the most important international oil shipping routes, said Chief Cabinet Secretary Minoru Kihara.

"We plan to make efforts so that (the released oil) will circulate in the market smoothly," he said.

The government will "continue to take every possible step to ensure the stable supply of energy, through international coordination and without ruling out any options," he said.

Japan imports more than 90% of its crude oil from the Middle East, making it highly vulnerable to the effective closure of the Strait of Hormuz by Iran.

Tokyo will reduce the mandatory 70-day reserve requirement for oil refiners and trading companies under its oil stockpiling law to 55 days' worth.

Last week, Prime Minister Sanae Takaichi announced the government's plans to release about 80 million barrels of oil, the largest amount ever, equivalent to 45 days' worth of domestic consumption.

As of the end of 2025, Japan held reserves of approximately 470 million barrels of oil, equivalent to 254 days of domestic consumption.

Australia on Friday announced that it will release six days' worth of petrol from its emergency stockpile and five days of diesel amid the ongoing conflict.

Energy Minister Chris Bowen said that the fuel “would not flow immediately due to the complexities of supply chains, but it would give fuel retailers flexibility to manage their supply.”

Australia currently holds 36 days' worth of petrol supply, 29-day supply of jet fuel, and 32-day supply of diesel.

Since Israel and the US launched joint attacks on Iran on Feb. 28, killing around 1,300 people so far, including then-Supreme Leader Ayatollah Ali Khamenei, hostilities have escalated.

Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets. It has also effectively closed the Strait of Hormuz since early March, sending global oil prices surging.