The Japanese government has commenced the release of its oil reserves on the 16th, aiming to counter national oil supply uncertainties arising from the ongoing conflict between the United States and Iran. With no oil tankers left from before the war to transport oil, Japan is releasing stockpiled oil to ensure stability in fuel prices. As part of this initiative, the Ministry of Economy, Trade, and Industry announced the decision to reduce the statutory oil reserve requirement from 70 days to 55 days, allowing major oil wholesalers an additional 15 days' worth of oil to be released in response to the supply shortage from the Middle East.

Immediately following this announcement, private companies in Japan began releasing 15 days' worth of their stockpiles, followed by plans for up to 30 days' worth of government-held reserves to be distributed through wholesalers. The government is opting for discretionary contracts instead of the usual competitive bidding process to stabilize oil prices at a specific level. The total quantity of the released oil reserves is expected to be approximately 80 million barrels (12.7 billion liters). Prime Minister Sanae Takaichi has previously stated that Japan anticipates a significant reduction in crude oil supplies by the end of the month and pledged to cooperate with the G7 and the International Energy Agency (IEA) to ensure a steady supply of oil products like gasoline.

The decision to release the stockpiled oil comes at a critical time when the Strait of Hormuz is essentially blockaded, which is key for oil transport. Usually, oil tankers from the Middle East take about 20 days to reach Japan. Considering that the last oil tankers exited the Strait of Hormuz shortly after the initial US and Israeli airstrikes in late last month, there is a high likelihood that oil supplies from the Middle East will be significantly disrupted this weekend, coinciding with the third week of military operations in the region.