Tokyo: Japan is preparing to release its oil reserves to cope with the impact of the war with Iran. Japanese Prime Minister Sanae Takaichi announced yesterday that the Japanese government has decided to release oil from both public and private strategic reserves equivalent to 45 days' worth of usage in response to the crisis in Iran, which is severely threatening the energy supply chain.

According to Thai News Agency, Japanese leaders have stated that the attacks on cargo ships passing through the Strait of Hormuz are likely to lead to a rapid decline in crude oil imports by the end of this month. They noted that the efficient passage of crude oil tankers through the Strait of Hormuz is currently impractical, impacting Japan, which relies heavily on Middle Eastern oil imports (95%), more than any other country in the world. Therefore, to prevent disruptions to the distribution of gasoline and petroleum products domestically, Japan has decided to begin releasing its oil reserves starting March 16th, without waiting for official approval from the International Energy Agency, in order to alleviate the tight supply and demand conditions in the global energy market.

Regarding the details of the operation, Ms. Takaichi stated that Japan will release oil reserves from the private sector for 15 days and from national reserves for another month to deliver to domestic refineries as quickly as possible. At the same time, they are prepared to immediately utilize oil from joint reserves held with other oil-producing countries.

Global oil prices surged nearly 5 percent on Wednesday night following a new attack on ships in the Strait of Hormuz, leading analysts to believe that the International Energy Agency's proposal to release a historic oil reserve may not be enough to alleviate market concerns.