Japan Diversifies Oil Imports Amid Hormuz Conflict

Japan is seeking to reduce its dependence on oil exports through the Strait of Hormuz by investing in pipeline projects abroad, particularly in the Middle East. According to a document produced by Japan's economy ministry, the country will provide risk-capital funding to Japanese companies for these investments.

This move comes after Saudi Arabia and the UAE asked Japan to participate in the expansion of oil pipeline networks in the region earlier this year. The countries are attempting to diversify oil export routes away from the Strait of Hormuz due to the ongoing conflict in the area.

Before the Iran war, Japan relied on the Middle East for 95% of its crude imports. However, the shock loss of supply forced refiners to seek alternative sources, and the government released oil from strategic reserves to offset the lack of supply through the Strait of Hormuz.

In April 2026, Japan's energy imports from the Middle East plummeted by 67.2% compared to the same month in 2025. The country has since been scrambling to replace Middle Eastern supply with alternative imports and release crude from its strategic reserve.