Japan can secure enough oil into 2027, Takaichi says

TOKYO — Prime Minister Sanae Takaichi said Tuesday that Japan can secure enough alternative oil supplies to last into 2027, amid concerns over disruptions to energy imports from the Middle East due to the U.S.-Israeli war with Iran.

Takaichi's remarks to the press came after the delayed passage of her government's record 122.31 trillion yen ($767 billion) budget for the year through next March and with fears growing about the economic impact of an oil supply crunch caused by the de facto closure of the Strait of Hormuz.

Japan relies on the Middle East for more than 90 percent of its crude oil imports, most of which pass through the strait, a key artery for global energy shipments.

"As a result of progress securing alternative supplies, we now have clear prospects of ensuring oil supply beyond the end of the year while keeping releases from reserves to a minimum," Takaichi said.

According to the prime minister, in addition to about eight months' worth of oil reserves, Japan has increased procurement from Middle Eastern sources not passing through the strait by more than 20 percent in April compared with 2025 levels, and will quadruple imports from the United States from May compared with a year earlier.

Amid calls for a supplementary budget to respond to cost pressures from rising energy prices, Takaichi said she does not think one is currently needed, adding that measures to aid households can come from the budget's reserve funds.

Pressure is also growing within the ruling Liberal Democratic Party and business circles to urge restrained use of oil, amid concerns the closure of the major crude shipping route could be prolonged.

On the possibility the government could urge the public to limit energy usage, Takaichi said her administration is keeping its options open and will "remain flexible and respond as appropriate without ruling out any options."

Takaichi held phone talks on Tuesday with United Arab Emirates President Mohammed bin Zayed al-Nahyan and agreed to deepen cooperation in various fields while working toward de-escalating the conflict in the Middle East and ensuring stability in the strait, according to the prime minister's post on X. Japan procures crude oil from the UAE.

Earlier Tuesday, Ryosei Akazawa, the industry minister appointed in late March as the government's czar for securing stable supplies of key commodities, told a press conference that a crude oil tanker that departed the Middle East arrived in Japan on Sunday, although he did not disclose its origin or other details.

He added Japan has secured the needed volumes through releases from petroleum reserves and other means, but declined to estimate future procurement volumes.

Akazawa also suggested addressing cases where fuel has not reached the fisheries and agricultural sectors.

Japan's procurement of crude oil from the Middle East, avoiding the strait, is expected to be full-fledged in May or later, according to the Ministry of Economy, Trade and Industry.

© KYODO