Prime Minister Sanae Takaichi announces the unilateral release of national and private sector oil reserves as the Strait of Hormuz crisis continues to rattle global energy markets.

Japan will release approximately 80 million barrels of oil from its strategic reserves in response to the ongoing war in the Middle East, Prime Minister Sanae Takaichi announced on Wednesday, March 11. 

The release is set to begin as early as March 16 and will draw from two sources: the equivalent of 15 days worth of oil consumption from private sector stocks, and one month worth from national reserves.

Japan's move comes as the International Energy Agency (IEA) and its 32 member countries agreed to the largest coordinated emergency oil release in the agency's history — a combined 400 million barrels to counter the supply disruptions caused by the conflict. The decision followed an extraordinary IEA meeting convened to assess market conditions amid the ongoing war.

The Middle East conflict, which began on February 28, has severely disrupted oil flows through the Strait of Hormuz, a vital waterway through which roughly 20 million barrels of crude oil and oil products pass daily, approximately 25 percent of the world's seaborne oil trade. Export volumes through the strait have dropped to less than 10 percent of pre-conflict levels, according to the IEA.

Japan is particularly exposed to the crisis. The country sources roughly 80 to 90 percent of its crude oil imports from the Gulf, with 70 percent transiting the Strait of Hormuz. Despite holding strategic reserves equivalent to 254 days of total consumption, the third-largest stockpile in the world, prolonged hostilities risk eroding those reserves and derailing the government's efforts to bring down inflation.

The government also announced subsidies for petroleum products to keep domestic gasoline prices at around 170 yen per liter.

Global oil prices have swung sharply since the conflict began, with Brent crude surging past $100 per barrel following the IEA announcement, a sign that markets remain skeptical that the reserve releases alone can offset the massive supply shock. Analysts warn that prices could climb further to between $120 and $150 per barrel if the Strait of Hormuz remains closed for an extended period.

Japan is the latest country to take emergency energy measures. South Korea has introduced price controls, Taiwan is securing additional liquefied natural gas shipments, and the Philippines has adopted a four-day workweek to reduce fuel consumption.