Japan has initiated its biggest-ever release of strategic oil, with Prime Minister Sanae Takaichi announcing that about 80 million barrels of state-held crude will be distributed to domestic refiners. The move, equivalent to 45 days of national oil demand, represents the government’s most dramatic energy security intervention in history. It follows a prior authorisation to release 15 days’ worth of private-sector reserves amid rising regional tensions. The US-Israel military campaign against Iran has intensified worries about the Strait of Hormuz, which handles over 90% of Japan’s oil imports.
Japan’s vulnerability to Middle Eastern supply shocks is structural. With almost no domestic oil production, the country has long depended on a continuous flow of tankers through the Persian Gulf. The current conflict threatens to interrupt that flow and expose Japan’s industries and consumers to severe shortages. Takaichi’s government has responded with an array of emergency measures designed to maintain supply continuity.
The 80 million barrel drawdown is 1.8 times the volume Japan released after the 2011 Fukushima nuclear crisis — a benchmark for the country’s previous largest emergency response. Japan’s total reserves, standing at approximately 470 million barrels, provide enough supply for about 254 days. The government has emphasised that this release is a precautionary measure and that overall stockpile levels remain healthy. Refinery access to emergency supplies is expected to prevent production disruptions.
Retail gasoline prices surged to a record ¥190.8 per litre before the government stepped in with subsidies capping prices at ¥170. These subsidies will be reviewed weekly, allowing the government to adjust its fiscal support based on the oil market’s direction. Energy economists have praised the intervention as timely and well-structured. Keeping energy prices manageable is seen as vital to preventing a broader economic contraction.
Meanwhile, unfounded fears about toilet paper shortages have circulated widely online. The trade ministry issued an advisory urging rational purchasing and clarifying that domestic production covers 97% of Japan’s toilet paper supply. The industry body confirmed that supply chains remain intact and production can be scaled up if needed. Japan is drawing on lessons from the 1973 oil shock and Covid-era panic buying to prevent a manufactured crisis from overshadowing its genuine energy response.