Japan navigates energy security challenges amid prolonged Strait of Hormuz shipping cMove curator news storyrisis

Following the February 2026 closure of the Strait of Hormuz, Japan is navigating severe energy security challenges. To mitigate the loss of Middle Eastern crude, which comprised over 90% of Japan's 2025 imports, Prime Prime Minister Sanae Takaichi authorized a critical oil stockpile drawdown in March 2026. Meanwhile, Iranian strikes on Qatari LNG facilities have caused long-term supply disruptions. Tokyo is responding through domestic subsidies, nuclear restarts, and the POWERR Asia initiative.

Strait of Hormuz closure impact

• ▪The Strait of Hormuz has been closed for nearly five months following the outbreak of war on February 28, 2026.
• ▪Japan depended on the Middle East for over 90% of its crude oil imports in 2025.
• ▪Saudi Arabia and the United Arab Emirates plan to maximize crude exports using bypass pipelines to Yanbu and Fujairah to offset lost volume from the Strait of Hormuz closure.

Japan oil stockpile drawdown strategy

• ▪Prime Prime Minister Sanae Takaichi authorized an oil stockpile drawdown on March 11, 2026, to prevent supply disruptions in Japan.
• ▪Japanese firms secured alternative crude oil supplies from the United States in early March 2026, with deliveries starting in May 2026.

LNG supply disruption from Qatar

• ▪The closure of the Strait of Hormuz has cut off approximately 80 million tons of liquefied natural gas annually, representing 20% of global supply.
• ▪Iranian strikes damaged nearly 20% of Qatar's liquefied natural gas production capacity, with repairs expected to take years.

Government energy subsidies fiscal burden

• ▪Japan introduced energy mitigation subsidies in March 2026 to shield households from gasoline price spikes, increasing the burden on state finances.
• ▪The delayed three-to-four-month pass-through of oil-to-liquefied natural gas prices is expected to impact Japanese electricity bills toward the end of 2026.

Nuclear power restart momentum

• ▪Safety reviews and local consent processes prevent nuclear restarts from immediately offsetting Japan's fossil fuel dependence during the current energy crisis.
• ▪Japan is building momentum for nuclear restarts, including the Kashiwazaki-Kariwa Nuclear Power Station restart and a decision to restart Hokkaido's Tomari plant.

POWERR Asia energy security initiative

• ▪Japan's POWERR Asia initiative seeks to establish collective regional stockpiling, mirroring the United States' post-1970s establishment of the International Energy Agency.
• ▪Japan launched the POWERR Asia initiative to provide financial support for Southeast Asian nations to procure oil and build stockpiles.

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