Japan to release strategic oil reserves from March 16 amid Gulf tensions

To prevent shortages of gasoline and other petroleum products, Japan will release its reserves in coordination with the G7 and the IEA, starting March 16, Takaichi said.

Japan plans to release part of its oil reserves as early as March 16, Prime Minister Sanae Takaichi announced on Wednesday, in line with the government's step to stabilize the energy market amid rising geopolitical tensions in the Middle East. 

Ahead of the International Energy Agency-led action, Takaichi said Japan is planning to release 15 days' worth of private-sector ​oil reserves and one month's worth of state ‌oil reserves to mitigate the supply chain concern. 

To prevent shortages of gasoline and other petroleum products, Japan will release its reserves in coordination with the G7 and the IEA, starting March 16, Takaichi said.

The decision comes as global energy markets witnessing crunch over rising conflicts involving Iran, raising concerns about potential disruptions to Middle Eastern crude shipments.

Tokyo's move came after thorough talks among leading energy-consuming countries about potential emergency actions to avoid supply chain disruptions and reduce fluctuations in oil prices.

Governments maintain strategic oil reserves to protect their economies from abrupt disruptions in global oil supply, especially at the time of geopolitical crisis or natural disasters that impact production and transportation. 

The planned release is likley to add extra oil into the market and support price stability if supply from major producing regions is disrupted.

Japan is heavily dependent on imported crude oil. It is closely tracking the developments in the global energy market. With a significant portion of its oil imports coming from the Middle East, the country is especially vulnerable to disruptions in the region.

According to Japanese authorities the reserve release is part of wider contingency measures to safeguard energy security and ensure stable fuel supplies for both households and businesses.