Japan began releasing national oil reserves on Thursday in response to Iran’s effective blockade of the Strait of Hormuz. The government will release one month’s worth of oil from 11 domestic storage facilities. This release will continue until June at the latest. Combined with the private reserve release that began March 16, Japan will release a record 45 days’ worth of oil. Consequently, this totals approximately 80 million barrels aimed at stabilizing supply.
Oil first flowed from the Kikuma national petroleum reserve base in Imabari, Ehime Prefecture. A pipeline transported the oil to the adjacent Taiyo Oil Co.’s Shikoku plant. There, refiners will process the crude into gasoline and diesel fuel for the domestic market. Releases will begin at other bases, including the one in Kitakyushu, starting Friday.
The government signed discretionary contracts on March 19 with four major oil wholesalers. Specifically, Eneos Corp., Idemitsu Kosan Co., Cosmo Oil Co., and Taiyo Oil will handle the distribution. The total sale amount will reach about 540 billion yen. The government also plans to release oil from joint reserves later this month. These domestic storage tanks are leased to oil companies from oil-producing countries. Notably, this marks the first time Japan will release oil from a joint reserve, with five days’ worth expected.
As of Sunday, Japan held 238 days’ worth of total oil reserves. The national reserve accounted for 146 days, private reserves for 86 days, and joint reserves for six days. The current drawdown will reduce these stockpiles substantially.
The Strait of Hormuz serves as a critical chokepoint for global oil shipments. Approximately 20 percent of the world’s petroleum passes through this narrow waterway daily. Iran’s recent actions have effectively blocked the strait, threatening energy supplies for major importers like Japan. Therefore, the government’s decision to tap these oil reserves aims to cushion the domestic market from supply disruptions.
The release of national oil reserves follows private sector releases that began earlier this month. Together, they represent Japan’s most aggressive response to the crisis. The government’s use of discretionary contracts with wholesalers allows for rapid distribution of the crude stockpiles. Refineries will process the oil into finished products before distribution to consumers.
Industry observers note that Japan’s extensive oil reserve system was designed precisely for such emergencies. Furthermore, the country maintains one of the largest strategic petroleum stockpiles in the world. The current drawdown will test the system’s capacity to respond to a prolonged supply disruption.
The government will monitor market conditions as the release proceeds. Officials will determine whether to adjust the pace or volume based on supply and demand dynamics. The release of joint reserves represents an additional tool in Japan’s energy security arsenal. This marks the first time Tokyo has activated this particular mechanism.
Looking ahead, Japan will continue coordinating with the International Energy Agency and other major consumers. The IEA has called for collective action to stabilize global oil markets. Japan’s release of oil reserves aligns with this broader international effort. The situation in the Strait of Hormuz remains fluid, and Tokyo will adjust its response as needed.
Japan began releasing its national oil reserves on Thursday in response to the Strait of Hormuz blockade. The government will release one month’s worth of crude from 11 facilities through June. This adds to private stock releases, bringing total drawdown to a record 45 days of supply. The action reflects Japan’s commitment to energy security amid escalating Middle East tensions. It also tests the country’s strategic petroleum reserve system during a genuine supply crisis. Japan will continue coordinating with international partners while monitoring market conditions closely.
