Japan Seeks Asian Cooperation to Strengthen Oil Reserves Amid Middle East Crisis

Japan is set to use the upcoming Asia Zero Emission Community (AZEC) meeting to collaborate with other Asian nations on plans to bolster oil reserves in the region. Japanese Industry Minister Ryosei Akazawa announced this initiative on Tuesday, emphasizing the need for action as the Middle East crisis continues into its eighth month. Japan, which imports nearly all of its oil and gas, faced supply challenges after the war in Iran disrupted crude and LNG shipments through the Strait of Hormuz.

Prime Minister Sanae Takaichi proposed the Partnership on Wide Energy and Resources Resilience (POWERR Asia) in April, aiming to strengthen regional oil reserves. This partnership is supported by a $10 billion (1.5 trillion yen) fund to help Asian countries enhance their oil stocks and mitigate future supply disruptions. Japan will now discuss concrete steps with other Asian nations to increase oil reserves and improve supply resilience.

In addition, Japan plans a special meeting with Saudi Arabia and the UAE, the leading crude oil exporters from the Middle East, to foster cooperation between Gulf producers and Asian consumers. The Japanese government hopes to position itself as a central hub linking Gulf producers with Asian consumers. Earlier this year, Japan participated in an IEA-coordinated global effort to release 400 million barrels of crude and oil products from strategic reserves.

Southeast Asia, particularly affected by the Middle East crisis, agreed on a petroleum security agreement in the spring. This agreement aims to enable coordinated emergency fuel sharing and collective responses to supply disruptions. Countries like the Philippines, Indonesia, Malaysia, and Vietnam experienced fuel shortages after the Strait of Hormuz blockage cut off most of their regular crude and fuel supply from the Middle East.