Japan starts releasing stockpiled oil amid Iran crisis

Japan started releasing oil from its stockpiles on Monday (March 16) to soften the shock from the U.S.-Israeli war on Iran, public broadcaster NHK reported.

As gasoline prices across Japan started to rise with the war disrupting supplies from the Gulf's Strait of Hormuz, Tokyo pledged to release a record 80 million barrels of oil, about 45 days of supply for the resource-poor nation.

The government has asked Japan's refiners to use the released crude, which will reduce the national reserves by 17%, to secure domestic supplies. It is not known how much of the oil will go to a global release of 400 million barrels being coordinated by the International Energy Agency to address the war's supply shock and price volatility.

Japan started its national oil reserve system in 1978, several years after the Arab oil embargo. The Group of Seven nations, reliant on the Middle East for around 90% of their oil, now stockpiles 254 days of consumption.

The release of stockpiles started with 15 days' worth of private-sector oil on Monday and a month's worth from the state reserves will be released from late this month, according to the Ministry of Economy, Trade and Industry.

-Production: Irene Wang/Reuters