The Japanese government has embarked on its biggest-ever release of strategic oil reserves, with Prime Minister Sanae Takaichi authorizing the drawdown of 80 million barrels to be delivered to domestic refiners starting Thursday. The catalyst is the US-Israel military operation against Iran, which has significantly disrupted oil tanker movement through the Strait of Hormuz. Japan, which relies on the Middle East for more than 90% of its oil imports, has treated this development as a national energy emergency requiring immediate action.
Japan’s oil reserves, totaling around 470 million barrels at year-end — covering approximately 254 days of consumption — represent decades of disciplined stockpiling. The 80 million barrel release now underway is 1.8 times larger than the previous record deployment made following the Fukushima nuclear disaster in 2011. That earlier crisis had necessitated shutting down all of Japan’s nuclear power plants, creating an unprecedented demand on reserve stocks.
Retail fuel prices had already climbed to a record average of ¥190.8 per litre before the government moved to intervene. A new subsidy program will cap gasoline prices at approximately ¥170 per litre, with adjustments made weekly as global oil market conditions shift. The government’s resolve to prevent pump prices from spiraling further reflects a determination to maintain household purchasing power and economic stability.
Social anxieties have extended beyond fuel, with some Japanese consumers rushing to stockpile toilet paper following social media speculation about shortages. The industry association representing toilet paper manufacturers quickly pointed out that 97% of Japan’s supply is made domestically from recycled paper, with no dependency on Middle Eastern oil inputs. Government officials echoed this message, asking the public to shop calmly and rationally.
On the diplomatic front, Japan has been navigating a delicate balance between its alliance obligations and its constitutional constraints. Takaichi declined Trump’s request for Japanese naval assistance in the Hormuz region, citing the postwar constitution that limits overseas military deployment. Tokyo has instead committed to sustained diplomatic engagement with regional actors to help restore stability and secure the energy lifelines that Japan’s economy depends on.