Japan Eyes Support for Non-Hormuz Oil Imports Amid Diversification Push

The Japanese government is exploring ways to support oil imports that bypass the Strait of Hormuz following the recent conflict in the region.

According to a proposal by the Economy, Trade and Industry Ministry, a system would be created for oil wholesalers and trading companies to share the additional costs associated with importing crude through alternative routes.

The move aims to diversify Japan's energy sources, which have historically relied heavily on Middle Eastern imports. The Strait of Hormuz has been a critical chokepoint for global oil trade, and its closure has forced countries to seek new suppliers.

The proposed mechanism would involve the government-backed Japan Organization for Metals and Energy Security collecting a levy from participating companies, which would then be used to fund subsidies for businesses importing oil that does not pass through the Strait of Hormuz.