Japan seeks alternate routes for energy sources amid Hormuz uncertainty

Japan is seeking alternative energy routes as uncertainty around the Strait of Hormuz persists.

Prime Minister Sanae Takaichi said Friday that the government is making every effort to secure crude oil from sources that do not rely on the strait, adding that the country should be able to secure sufficient supplies to last beyond this year, according to public broadcaster NHK.

She said Japan plans to release an additional 20 days’ worth of oil from its national reserves next month or later to help stabilize supply.

The remarks came during a meeting at the Prime Minister’s Office with Cabinet ministers on oil supply.

Takaichi also instructed Industry Minister Ryosei Akazawa to tackle supply chain issues, including concerns over shortages of paint thinners used in construction and auto maintenance.

She also urged the type-A heavy fuel oil used in the production of light diesel oil to be sold directly to businesses from wholesalers, instead of through distributors.

Takaichi also said that she has received requests for support from like-minded countries on procuring oil and was examining each request.

Vessel traffic through the Strait of Hormuz remains well below typical levels, limiting the flow of crude oil and liquefied natural gas (LNG) to global markets, despite a two-week ceasefire between the US, Israel and Iran

The strait typically handles about 20% of global oil and LNG trade, making any disruption a key driver of market volatility.