Japan taps oil reserves as Iran war spreads. Could it give China leverage?

South China Morning PostEN 2 min read 100% complete by Luna SunMarch 13, 2026 at 11:00 AM

AI Summary

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Japan has begun releasing 80 million barrels of oil from its national reserves, starting March 16, due to supply disruptions from the ongoing conflict in the Middle East and the closure of the Strait of Hormuz. This marks the first time Japan has independently tapped its reserves. The decision precedes a coordinated response from the International Energy Agency (IEA). Analysts suggest Japan's urgency stems from its heavy reliance on oil shipments through the Strait of Hormuz and the potential for rising domestic fuel prices to negatively impact its economy. Experts also believe this move highlights Japan's vulnerability and could increase its exposure to economic pressure from China, given existing tensions between the two nations.

Key Entities & Roles

Key Player Opposition Context

Ministry of Economy, Trade and Industry 40% South China University of Technology 40% Economist Intelligence Unit 40% Xu Weijun 50% Xu Tianchen 50% Iran 60% Middle East 60% Tokyo ×370% China ×270% International Energy Agency (IEA) ×270% Strait of Hormuz ×280% Japan ×690%

Keywords

oil reserves 90% japan 80% supply disruptions 70% strait of hormuz 70% iea 60% economic pressure 60% china 50% fuel prices 50% middle east conflict 40%