Prime Minister Sanae Takaichi confirmed that Japan expects to source 100% of its July oil supply from regions bypassing the Strait of Hormuz. This shift follows clashes between US and Iranian forces. Japan is aggressively diversifying its imports to protect the economy from supply chain shocks during the hot summer months.

Imports from the United States are expected to increase more than tenfold compared to last year. Japan is also sourcing crude from Canada, Mexico, Africa, and parts of Asia and South America. This represents a massive pivot for a nation that previously relied on the strait for over 90% of its oil.

Refining these new grades presents a technical hurdle. The Petroleum Association of Japan warns that refineries designed for Middle Eastern crude require modifications to process different oil properties. Shunichi Kito noted that blending ratios and equipment tolerances require significant work to avoid impacting operating conditions.

Takaichi plans to discuss these energy security issues at the upcoming G7 meeting in France. She intends to push for better cooperation between Asian nations and the International Energy Agency to increase stockpiles. Japan maintains that safe navigation of all sea-lanes is necessary for global stability.