Japan to start release of state oil reserve on Thursday to ease Iran impact

To mitigate the economic impact of soaring oil prices due to the US-Israeli war on Iran, Japan will begin releasing 30 days' worth of state-held oil reserves on Thursday, March 26, 2026. This action follows the private sector's release of 15 days' worth of oil stockpiles the previous week. The industry ministry plans to sell approximately 8.5 million kilolitres of oil from 11 storage bases nationwide. Additionally, the United Arab Emirates will discharge five days' worth of oil reserves in Japan for Japanese wholesalers. The releases are in response to Iran blocking the Strait of Hormuz, a critical energy supply route, after attacks by the US and Israel, which has driven up oil prices and weakened the yen.

Japan will begin releasing oil from its national strategic reserves this week, the largest release ever, due to concerns about potential shortages stemming from the US-Israel war on Iran disrupting tanker traffic through the Strait of Hormuz. The release will include both state-owned and private-sector reserves, totaling about 80 million barrels, equivalent to 45 days of domestic demand. Japan, which imports over 90% of its crude oil from the Middle East, is particularly vulnerable to disruptions in the region. The government has also introduced fuel subsidies to cap gasoline prices and has urged consumers to avoid hoarding toilet paper amid supply concerns. Japan currently holds reserves of about 470 million barrels of oil, equivalent to 254 days of domestic consumption.