[Japan] Japan diversifying crude supply and supporting pipelines to bypass Hormuz

As of August 26, 2026, Japan announced measures to strengthen energy security by diversifying crude oil supplies and supporting Middle Eastern pipeline projects that could provide routes that bypass the Strait of Hormuz. [1] About 94% of Japan’s crude oil imports came from the Middle East in 2025, making disruptions to the region and the Strait of Hormuz a significant supply risk. The government plans to provide financial support for bypass pipelines through JOGMEC and is considering measures to help companies manage the higher costs of sourcing oil through alternative routes. Other measures under consideration include reinsurance for oil tankers and additional naphtha reserves, as well as greater use of nuclear power and renewables. The government is expected to finalize specific measures and related legislation by the end of the year.

[1] https://www.cas.go.jp/jp/seisaku/gx_jikkou_kaigi/index.html