Japan Diversifies Oil Imports Away from Strait of Hormuz

Japan is seeking to diversify its oil export routes away from the Strait of Hormuz by investing in pipeline projects abroad. According to a document produced by Japan's economy ministry, the investment will come through Japanese companies in the form of risk-capital funding.

This move comes after the sudden loss of Middle Eastern supply due to the war with Iran, which forced refiners to scramble for alternatives and pushed the government to tap strategic oil reserves. Before the war, Japan and its refiners depended on the Middle East for roughly 95% of all crude oil imports.

As a result of the conflict, Japan's energy imports from the Middle East fell 67.2% in April compared with the same month in 2025. The government has since worked to replace lost supply with alternative sources, including the United States and Russia.