Japan's Hormuz Energy Shock Exposes Vulnerable Supply Chain

The Iran conflict has exposed Japan's reliance on Middle Eastern oil, prompting Tokyo to diversify its energy sources. The country began drawing on private and state oil reserves in March 2026 after the Strait of Hormuz was closed.

Despite disruptions, Japan has faced higher energy prices rather than a severe supply shortage. Large oil reserves and subsidies have limited how far prices have risen.

The conflict has prompted Tokyo to rethink its energy policies to better withstand future energy shocks. Japan will continue to seek alternative supplies from reliable partners, including increasing imports from the U.S., but it cannot quickly reduce its reliance on the Middle East.