Japan to tap oil reserves in historic move amid Middle East crisis

Japan's Prime Minister Sanae Takaichi announced that the nation will begin releasing crude oil from its strategic reserves as early as next Monday. This move is intended to curb potential spikes in gasoline and petroleum prices resulting from Middle East conflicts and disruptions to Persian Gulf oil shipments. This intervention is historic because it is the first time Japan is tapping its government oil reserves without coordinating with the International Energy Agency (IEA) since stockpiling began in 1978. The release will involve 15 days' worth of private-sector reserves followed by one month of government stockpiles. Japan's decision stems from its high dependency, with over 90% of its crude imports coming from Persian Gulf producers, particularly vulnerable due to tensions in the Strait of Hormuz. The government aims to cap retail gasoline prices around 170 yen per liter to buffer the public from projected peaks that could exceed 200 yen.

(Source：Crypto Briefing)