Japan taps joint oil reserves as supply crisis deepens

Japan to tap joint oil reserves as supply crisis deepens

Japan

TOKYO, March 24, 2026 – Japan will begin tapping oil stockpiles jointly held with producing countries by the end of March as it escalates emergency measures to address supply disruptions due to the Middle East crisis, Prime Minister Sanae Takaichi said on social media on Tuesday.

The move complements releases from private and national reserves, with Japan’s total contribution to a co-ordinated IEA drawdown reaching nearly 80 million barrels, while around 13 million barrels are held jointly with Saudi Arabia, the UAE and Kuwait. Of these, Japan plans to utilise five days’ worth of supply as tanker flows through the Strait of Hormuz remain halted and alternative shipments are redirected via longer routes.

“We began releasing privately held reserves on March 16 and will begin releasing national reserves from the 26th. Releases from jointly held stockpiles with oil-producing countries are also scheduled to begin later in March,” said Takaichi.

Japan is also securing alternative crude supplies, including shipments from Saudi Arabia and the UAE that bypass the Strait of Hormuz, as well as cargoes from outside the Middle East expected by late April. Industry bodies warned that replacement supplies from the US or other regions may not arrive before June, prompting calls for additional stockpile releases.

Japan is one of the world’s largest crude importers, relying heavily on Middle Eastern suppliers for its oil needs, and maintains strategic reserves alongside joint storage agreements with key producers to strengthen energy security and supply resilience.

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