Japan will release part of its emergency oil reserves to stabilise energy supplies amid rising tensions in the Middle East, Reuters reported. The move will include the release of 15 days worth of oil held by the private sector and one month worth of state oil reserves as authorities attempt to ease supply concerns and calm global energy markets.“Japan plans to release 15 days worth of private-sector oil reserves and one month’s worth of state oil reserves,” Prime Minister Sanae Takaichi said.The decision comes as oil prices surge and supply risks grow due to the expanding conflict involving the United States, Israel and Iran, which has raised fears of shipping disruptions in key energy routes.Earlier this week, the International Energy Agency urged major economies to consider coordinated action. During an online meeting with Group of Seven finance ministers on Monday, the agency called for the release of emergency stockpiles to support global supply.“IEA called for each country to do a coordinated release of oil reserves,” Japanese Finance Minister Satsuki Katayama said during a briefing.“In response to the current situation… the G7 has agreed to continue closely monitoring developments in the energy market and to take necessary measures to support global energy supply, including the release of oil reserves,” she said.The meeting included finance ministers from the G7 countries as well as representatives from the Organisation for Economic Cooperation and Development, the World Bank and the International Monetary Fund, Katayama said. She added that the G7 energy ministers are expected to meet soon to discuss further steps.Oil prices earlier this week climbed to levels not seen since mid-2022 as some major producers reduced output while fears grew over prolonged disruption to shipping routes linked to the widening US-Israeli war with Iran.Japan is particularly vulnerable to disruptions in Middle Eastern supplies as it relies on the region for about 95 percent of its oil imports. The country maintains one of the largest strategic petroleum reserves in the world.The government had already been facing calls from domestic refiners to release oil from national reserves. Japanese oil companies earlier asked authorities to consider such a step amid concerns over supply shortages linked to U.S.-Israel strikes on Iran, according to a Bloomberg report.Companies have also discussed using crude stored in tanks leased to oil producing nations, which Japan can purchase on priority during emergencies, according to the report.
