Japan Unveils Sweeping Energy Policy Package Amid Strait of Hormuz Crisis

Japan's government unveiled an energy policy package on August 26, 2026, in response to ongoing conflict in the Middle East that has strained one of the world's most critical oil shipping routes.

The package aims to diversify oil supply and reduce Japan's dependence on the Strait of Hormuz, which has been closed since late February 2026 due to the U.S.-Israeli conflict with Iran.

Key measures include a levy-funded subsidy system for businesses that import crude bypassing the Strait of Hormuz, pipeline infrastructure cooperation with Middle Eastern nations, and naphtha stockpiling or refining from stored crude.