Mar 8 • 16:15 UTC 🇶🇦 Qatar Al Jazeera

Japan resorts to its oil reserves as war in Iran escalates

Japan is preparing to possibly draw from its oil reserves due to disruptions in supply linked to the war involving the U.S. and Israel against Iran.

A senior Japanese parliament official announced that the government has instructed its strategic oil reserve facility to be on alert for possible withdrawals of crude oil shipments. This decision comes as the ongoing United States-Israel conflict with Iran has hindered oil supply flows from the Middle East, a region from which Japan sources approximately 95% of its oil. The majority of these supplies, about 70%, transit through the Strait of Hormuz, which has faced effective closure following recent military actions against Iran.

Akira Nagatsuma, a member of the opposition Central Reform Alliance, informed Reuters that officials from the Japan Oil, Gas and Metals National Corporation at the Shibushi national oil storage base have received directives for preparedness. However, specific details regarding the timing of any potential withdrawals from the reserves remain unclear, and it is uncertain whether other storage facilities have received similar instructions. The Shibushi site, located in southern Japan, is one of the country's strategic oil reserve locations, essential for its energy security.

The disruption in oil supplies underscores Japan's vulnerability due to its heavy reliance on the Middle East for energy resources. As tensions continue to rise in the region, Japan's government is acting to secure energy supplies that are crucial for the nation’s economy and daily functioning. This move may reflect broader concerns about geopolitical stability and energy dependence, prompting Japan to reassess its energy strategies in response to external pressures and potential supply shortages.

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